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Möbius Operational Excellence Seminar 23 04 2015
Introduction
Möbius Operational Excellence Seminar 23 04 2015
business consulting. profoundly different.
Source: Blog Ivo Mechels,
“Consujuisten en Michel van de Colruyt”
Michel showed me the fairtrade rice
Jef Colruyt had handpicked in Benin”
Möbius Operational Excellence Seminar 23 04 2015
Möbius Operational Excellence Seminar 23 04 2015
1. RESPECT
Reverse the triangle
“Your people are the experts. The highest form of respect is to
continuously challenge them and give them the autonomy to
improve their job - Mr.Yoshino, ex-managerToyota-
Business Consulting. Grondig Anders.8
Business Consulting. Grondig Anders.9
How to load a truck
in a safe and
compact way?
The Circle of Chalk
business consulting. profoundly different.
“Toyota managers should be
sufficiently engaged on the
factory floor that they have
to wash their hands at least
three times a day”
-Taiichi Ohno-
Genchi Genbutsu
2. Go see
Everytime you get promoted you get further away from reality.
By the time you are CEO, you are the most ignorant person
in your organisation”
- Sensei Imai Maasaki, founding father of Kaizen -
4%
17%
42%
100%
100%
1%
Mountain of
ignorance
Reversed mountain
of power
Problemsweknowof
Distributionofpower
The Figure
Trap
business consulting. profoundly different.
Good morning, I’ll
be taking over your
shift today ”
business consulting. profoundly different.15
Does your company have a
“clean desk” policy?
And is your desk
clean at this very
moment?
3. Walk the talk
People are looking for integrity in their leaders”
- R. Hogan & R. B.Kaiser, “What we know about leadership”-
Mission & identity
Values & belief
Competencies
Behaviour
Individual
Result
Organisation
Mission & identity
Values & belief
Competencies
Behaviour
Result
“Even our CEO doesn’t
have his own desk”
- Möbius-
19
“Good and clear leadership is
being on site with the
employees to lead, accompany
and support”
-Volvo Cars Ghent-
20
The Eternit KoB management
and Continuous Improvement
team assembling together at
the start of their trajectory
21
GO SEE
WALKTHE
TALK
RESPECT
BELIEF
LONG-TERM
FOCUS
PATIENCE
22
Case Study
BASF Antwerpen NV
Operational Excellence
Luc de Vos
Operational Excellence – Continuous Improvement
AGENDA
• BASF Antwerpen NV – Strategic vision
• Operational Excellence
• Continuous Improvement
AGENDA
• BASF Antwerpen NV – Strategic vision
• Operational Excellence
• Continuous Improvement
BASF ANTWERPEN N.V.
A healthy company
approx. 7
Billion Euro
600
Hectares
3.000
Employees
BASF ANTWERPEN N.V.
Investing for the future
0.0
100.0
200.0
2009 2010 2011 2012 2013 2014
Mio€
BASF
Product Portfolio
CHEMICALS
PERFORMANCE
PRODUCTS
FUNCTIONAL
MATERIALS &
SOLUTIONS
AGRICULTURAL
SOLUTIONS OIL & GAS
Dispersions &
pigments
Catalysts
Oil & gas
Antwerp Belgium
Nutrition & health
Paper chemicals
Petro-chemicals Care chemicals Performance
materials
Construction
chemicals
Crop protection
Monomers
Intermediates
Performance
chemicals
Coatings
Petro-chemicals Care chemicals Performance
materials
Construction
chemicals
Crop protection
Monomers
Intermediates
Performance
chemicals
Coatings
Petro-chemicals Care chemicals Performance
materials
Monomers
Intermediates
Performance
chemicals
376
production sites
112,000
employees
No. 1
in chemistry
74
billion euro
BASF AROUND THE WORLD
Regional centres
Selected production sites
Most important research sites
Verbund sites
Freeport Geismar
Antwerp
Nanjing
Kuantan
Ludwigshafen
VERBUND
PRODUCT INTEGRATION
Energy
integration
Know-how
network
Logistical
integration
Integration
of
environmental
protection
Shared infrastructure
Product integration
VERBUND
Verbund Integration
VERBUND
PRODUCT INTEGRATION
Less transport
Intelligent use
of by-products
Less environmental impact
Sharing knowledge
EXAMPLE
From naphtha to
nappies
12345
VERBUND
PRODUCT INTEGRATION
VERBUND
Verbund Integration
BASF
In a changing world
BASF
in a changing world
A CHALLENGE...
BASF RISES TO IT!
67%
urban residents
1.2
billion cars
2020 2025 2030 2050
+ 50%
energy
9
billion people
BASF
in a changing world
WE CREATE
CHEMISTRY
FOR A
SUSTAINABLE
FUTURE
FOR A
SUSTAINABLE
FUTURE
BASF
BASF Group worldwide
We create chemistry
for a sustainable future
We add value as
one company
We innovate to make our
customers more successful
We drive sustainable
solutions
We form the
best team
Creative
Open
Responsible
Entrepreneurial
BASF
What – our strategic principles
Sustainability and Safety
Verbund Management Operational excellence
Learning and Growth
we create
chemistry for
a sustainable
future
We add value as
ONE company
We innovate to make our
customers more succesful
We drive
sustainable solutions
We form the
best team
AGENDA
• BASF Antwerpen NV – Strategic vision
• Operational Excellence
• Continuous Improvement
OPEX
Operational Excellence
Lean Culture
ProjectPortfolioManagement
Opex
Lean culture as basis to achieve Opex in a sustainable way
OPEX
Operational Excellence
 Opex in Operations: Opal 21 – Implementation of a continuous improvement process
 Opex in Technical Services: Service Excellence
 Opex in other Services: HR full force, Ocean 2015,…
Project „Opal 21“
A fundamental mindstep change by
implementing the BASF PS
Productivityperformance
site/production
Time
BASF Management is convinced that
• “continuous improvement”
is a core task within the company,
and complementary to our production process
• “continuous improvement”
will be a core task for
EVERYONE within the company
OPERATIONAL EXCELLENCE
BASF Production System: 6 core elements
Full potential of BASF production system
can only be realized through interaction of all key elements
Qualification Automation
Process
optimization
Betriebliche
Qualifi-
zierung
Motivated
Employees
Roles and
responsibilities
Optimization of
plant structures
Lean management
Safe
production
OPERATIONAL EXCELLENCE
Continuous Improvement
Consolidation of the
organization & definition of
improvement measures
2
Disturbance of ‘daily operations' by
implementing the BASF Productiesysteem
("Change")
1
3
Operational Excellence by
Continuous Improvement
Classical way of
optimization
α > 0
Operations without optimization
Classical way of optimization
Framework
D
C
Q
S
P
Create breakthrough results
Create problem-solving capability and
culture of continuous improvement
AGENDA
• BASF Antwerpen NV – Strategic vision
• Operational Excellence
• Continuous Improvement
LEAN MANAGEMENT
Continuous Improvement
LEAN MANAGEMENT
Continuous Improvement - Our Mission Statement
“Day-to-day performance
improvement as
foundation of our
organization´s culture”
LEAN MANAGEMENT
What did we achieve so far?
From OPAL21
Connected to Operational Targets (OD)
Request from
within the
organisation
 Measure capabilities and performance on both
Management and Shopfloor level
LEAN MANAGEMENT
Lean Performance Dialogue
 No audit … new “as-is” is basis to define specific
targets and LEAN efforts (improvement kata)
LEAN is only...
...5S
LEAN is only...
...a toolset
LEAN is only...
...for production
LEAN is only...
...bottom-up
LEAN... can be
done in 6 months
LEAN requires a cultural transformation!
What some people believe... ...deserves better answers:
LEAN is to design processes without waste!
LEAN is to foster mindset and capabilities!
LEAN is for collaboration of all disciplines!
LEAN is to realize profitable growth targets!
LEAN is...
...for cutting
fixed cost
LEAN is only...
...for shift people
LEAN is for value-adding use of resources!
LEAN is a leadership responsibility!
LEAN MANAGEMENT
7 common myths…
50
But we need to break the wall…
51
1. Leadership demonstrates belief in CI
4. From ad-hoc to development program
2. Reinforce CI roles across the organization
3. Share LEAN practices
52
A new focus based on BELIEF
What do you think you as leadership team can do to truly
understand and live LEAN, pulling the organization?
A new focus based on BELIEF
Top Management
 State and communicate
clear program goals
 Commit to provide
resources sustainably
 Communicate the story for
the “case for change”
 Role model in LEAN
leadership
Plant/functional Mgt
 Commit and actively live to
own new role
 Provide resources and
assign the most skillful
team
 Promote and communicate
change stories
 Acknowledge improvement
and reward employees
 Celebrate success with
employees!
Supervisors Area Mgt
 Coach the continuous
improvement routine
 Foster problem solving as
daily core activity
 Build a culture with trust to
learn from failure
 Cooperate with other
areas - act as a team
A new focus based on BELIEF
A new focus based on BELIEF
150 years
Key Note
Möbius
23/04/2015
Leadership in
innovative organizations
Herman Van de Velde
Director
Design, production
and distribution of
luxury lingerie
From craftsmanship to industrial production
1919: Foundation Van de Velde
Achiel and Margaretha Van de Velde
• Pioneers
• 1st product: ladies corsets with an eye for quality
• distribution through retailers
Möbius Operational Excellence Seminar 23 04 2015
From craftsmanship to industrial production
1919: Foundation Van de Velde
Achiel and Margaretha Van de Velde
• pioneers
• distribution through retailers
2nd generation:
• use of elastic materials
• from the 40’s onwards  retail in Belgium and the Netherlands
• Extension of assortment
– Fashion
– Marketing-driven
– Delocalization of production
– Cultural change
– Governance change
Change VdV business model
Change business model: Fashion
Design department
• Team of 50 people (stylists, textile engineers, pattern
makers, etc.)
• 500 new styles per year
• 20.000 SKU’s
• Combination of fashion and fit
Change business model: Marketing-driven
Focus-strategy
• Product: lingerie
• Luxury Segment (= price segment)
FOCUS: choice of market segment
Segmentation of the lingerie market
80 % 70 %
< EURO 20
STANDARD
Hunkemöller, Etam
< EURO 20 – 60
MIDDLE
< EURO 60 - 100
LUXURY
MJ, PrimaDonna, MJ
l’Aventure
> Euro
100
Sarda20 %
30 %
Northern
Europe
Southern
Europe
Change business model: Marketing-driven
Focus-strategy
• Product: luxury lingerie
• Price Segment
• Distribution channel
FOCUS: choice of distribution channel
Distribution channel % totalmarket Positioning Van de Velde
Specialized retailers 28 to 50 % X
Luxury departmentstores
and chains 7 to 21 %
Departmentstores X
Chains -
Supermarkets and food 50 to 24 % -
Mailorder 15 to 5 % -
Specialist stores lose market share, but remain
THE Van de Velde partner in distribution
Specialist stores lose market share in most European
markets
• Germany : 21%, decreasing
• France : 13%, decreasing
• The Netherlands : 35%, decreasing
• Belgium : 40%, stable
Fit:
Find the correct
size
Style:
Choose the right
cut and shape
Fashion:
what is the right colour for this
woman and this particular
situation?
“STYLING”
“Shaping the bodies and minds of women”
www.lingeriestyling.com
3 components of Lingerie Styling
Retail investments
- USA: Intimacy
- 18 stores
- Turnover 2012: 33,7 mio USD
- The Netherlands: Linchérie
- 19 franchises
- Turnover 4,8 mio EUR
Retail investments
- Rigby & Peller
- England:
- 7 stores in and around London
− ‘Bra Fitting’ (Lingerie Styling).
− Turnover 2012: 9,2 m£
− Germany: 9 stores
− Spain: 3 stores
− Denmark : 1 store
- Hong Kong / China : Private Shop
− 22 stores in Hong Kong and China
− Turnover 2012: 6,7 m$
− Joint venture between Getz and Van de Velde
Change business model: Marketing-driven
Focus-strategy
• Product: luxury lingerie
• Price Segment
• Distribution channel
• Geographic focus
• Brands instead of private label
1981: Marie Jo 1990: PrimaDonna 1997: Marie Jo L’Aventure
2009: Andres Sarda 2010: PrimaDonna Twist 2014: PrimaDonna Swim
74
Brand policy instead of private label
Change business model: Delocalization
Two tendencies
• Centralization of core activities
• Delocalization of production
Change business model: Delocalization
Centralization of core activities
• Strategy and policy
• Design
• Purchases (European fabrics)
• Quality control raw materials
• Cutting of the fabric
• Core production Belgium
• Quality control and expedition
Delocalization of production
49,5%
46,2%
4,3%
China Tunesia Eastern Europe
Change business model: Delocalization
Change business model: Delocalization
Delocalization of production
– Quality is identical all over the world
“Made in Belgium” has been replaced by “Made by
Marie Jo”
Conditions:
• Detailed preparation of the process
• Strong local management
• Strict compliance rules by headquarters
– SA 8000 (social label)
SA8000
Social Accountability 8000
Requirements:
1. No child labour
2. No forced labour
3. Health and Safety
4. Freedom of Association & Right to Collective
Bargaining
5. No discrimination
6. No disciplinary practices
7. Working Hours
8. Remuneration
9. Management Systems
9,4
42,1
78,3
111,9
166,3
179,8 181,8 182,4
198,4
0
20
40
60
80
100
120
140
160
180
200
1985 1995 2000 2005 2010 2011 2012 2013 2014
Omzet in miljoen €
Van de Velde has always known a constant
turnover growth
People
1997 2000 2005 2010 2011 2012 2013 2014
Belgium 424 417 416 474 490 496 511 526
Hungary 259 322 422 - - - - -
Tunisia 125 183 420 672 614 631 512 429
Spain - - - 65 60 56 27 27
Others
(abroad)
27 29 36 56 58 65 60 65
Retail - - 34 227 323 316 345 325
TOTAL 835 951 1328 1494 1544 1564 1455 1372
Van de Velde: changing organisation
Before: Taylorist organisation
• Centralism, control, hierarchy
• Little room left for HR
• Piece work
• Specialization
• Repetitive work
• Transactional leadership
Van de Velde: changing environment
1. Globalisation
2. Fashion driven
3. Difficulties to attract people
Evolution towards innovation driven organisation
• Lowering the brainline
• Teamwork
• Polyvalency
• Expanding job content
• Stimulating initiative
• Different reward and compensation systems
Evolution towards innovation driven organisation
• Lowering the brainline
• Teamwork
• Polyvalency
• Expanding job content
• Stimulating initiative
• Different reward and compensation systems
• Coaching leadership / transforming Leadership
Main responsibilities for leadership
1. Define strategy
2. Inspire
3. Continuity
86
Qualities of good leadership
• Trust
• Integrity
• Empathy
• Ambition
• Optimism
• Authenticity
87
Evolution towards innovation driven organisation
• Lowering the brainline
• Teamwork
• Polyvalency
• Expanding job content
• Stimulating initiative
• Different reward and compensation systems
• Coaching leadership / transforming Leadership
• Stimulate enthusiasm and passion
Stimulate enthusiasm and passion
• More than job satisfaction
• They do more and go beyond what is called for
(customers, colleagues, organization)
• Welcome rather than resist change
• Willing to go the extra mile
Ratio between ‘bevlogen (enthusiastic)’ versus ‘gedistantieerd
(dissociated)’ in average and top companies
8
20
29
50
63
30
Wereldtop Gemiddeld
Bevlogen
Neutraal
Gedistantieerd
Stimulate enthusiasm and passion
How to stimulate enthusiasm?
• Decisional authority
• Communication/transparancy
• Strategic information
• Comfort information
• Motivation information
• Community information
• Fair treatment
• Systematic and honest feedback
• Authenticity
Stimulate enthusiasm and passion
The best workplace on earth according to employees
1. Let people be themselves
capacity to absorb different skill sets and personalities
2. Unleash the flow of information
radical honesty
Example: - sessions
Stimulate enthusiasm and passion
The best workplace on earth according to employees
1. Let people be themselves
2. Unleash the flow of information
3. Magnify people’s strenghts
4. Stand for more than shareholder value
A company is a living entity with different needs
• Fysical level: profit, liquidity, solvability
• Emotional level: loyalty, pride, respect, appreciation
• Mental level: drive (“goesting”)
• Spiritual level: internal and external connectivity
Stimulate enthusiasm and passion
The best workplace on earth according to employees
1. Let people be themselves
2. Unleash the flow of information
3. Magnify people’s strenghts
4. Stand for more than shareholder value
5. Show how the daily work makes sense
6. Have rules people can believe in
7. Inspiring goals
“If you want to build a ship, don’t drum up people to
collect wood and don’t assign them tasks and work,
but rather teach them to long for the endless
immensity of the sea.”
‘Le Petit Prince’
Antoine de Saint-Exupéry
Möbius Operational Excellence Seminar 23 04 2015

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Möbius Operational Excellence Seminar 23 04 2015

  • 4. business consulting. profoundly different. Source: Blog Ivo Mechels, “Consujuisten en Michel van de Colruyt” Michel showed me the fairtrade rice Jef Colruyt had handpicked in Benin”
  • 7. 1. RESPECT Reverse the triangle “Your people are the experts. The highest form of respect is to continuously challenge them and give them the autonomy to improve their job - Mr.Yoshino, ex-managerToyota-
  • 10. How to load a truck in a safe and compact way?
  • 11. The Circle of Chalk
  • 12. business consulting. profoundly different. “Toyota managers should be sufficiently engaged on the factory floor that they have to wash their hands at least three times a day” -Taiichi Ohno-
  • 13. Genchi Genbutsu 2. Go see Everytime you get promoted you get further away from reality. By the time you are CEO, you are the most ignorant person in your organisation” - Sensei Imai Maasaki, founding father of Kaizen - 4% 17% 42% 100% 100% 1% Mountain of ignorance Reversed mountain of power Problemsweknowof Distributionofpower The Figure Trap
  • 14. business consulting. profoundly different. Good morning, I’ll be taking over your shift today ”
  • 16. Does your company have a “clean desk” policy? And is your desk clean at this very moment?
  • 17. 3. Walk the talk People are looking for integrity in their leaders” - R. Hogan & R. B.Kaiser, “What we know about leadership”- Mission & identity Values & belief Competencies Behaviour Individual Result Organisation Mission & identity Values & belief Competencies Behaviour Result
  • 18. “Even our CEO doesn’t have his own desk” - Möbius-
  • 19. 19 “Good and clear leadership is being on site with the employees to lead, accompany and support” -Volvo Cars Ghent-
  • 20. 20 The Eternit KoB management and Continuous Improvement team assembling together at the start of their trajectory
  • 22. 22
  • 24. BASF Antwerpen NV Operational Excellence Luc de Vos Operational Excellence – Continuous Improvement
  • 25. AGENDA • BASF Antwerpen NV – Strategic vision • Operational Excellence • Continuous Improvement
  • 26. AGENDA • BASF Antwerpen NV – Strategic vision • Operational Excellence • Continuous Improvement
  • 27. BASF ANTWERPEN N.V. A healthy company approx. 7 Billion Euro 600 Hectares 3.000 Employees
  • 28. BASF ANTWERPEN N.V. Investing for the future 0.0 100.0 200.0 2009 2010 2011 2012 2013 2014 Mio€
  • 29. BASF Product Portfolio CHEMICALS PERFORMANCE PRODUCTS FUNCTIONAL MATERIALS & SOLUTIONS AGRICULTURAL SOLUTIONS OIL & GAS Dispersions & pigments Catalysts Oil & gas Antwerp Belgium Nutrition & health Paper chemicals Petro-chemicals Care chemicals Performance materials Construction chemicals Crop protection Monomers Intermediates Performance chemicals Coatings Petro-chemicals Care chemicals Performance materials Construction chemicals Crop protection Monomers Intermediates Performance chemicals Coatings Petro-chemicals Care chemicals Performance materials Monomers Intermediates Performance chemicals
  • 30. 376 production sites 112,000 employees No. 1 in chemistry 74 billion euro BASF AROUND THE WORLD Regional centres Selected production sites Most important research sites Verbund sites Freeport Geismar Antwerp Nanjing Kuantan Ludwigshafen
  • 32. VERBUND PRODUCT INTEGRATION Less transport Intelligent use of by-products Less environmental impact Sharing knowledge EXAMPLE From naphtha to nappies 12345 VERBUND PRODUCT INTEGRATION VERBUND Verbund Integration
  • 34. BASF in a changing world A CHALLENGE... BASF RISES TO IT! 67% urban residents 1.2 billion cars 2020 2025 2030 2050 + 50% energy 9 billion people
  • 35. BASF in a changing world WE CREATE CHEMISTRY FOR A SUSTAINABLE FUTURE FOR A SUSTAINABLE FUTURE
  • 36. BASF BASF Group worldwide We create chemistry for a sustainable future We add value as one company We innovate to make our customers more successful We drive sustainable solutions We form the best team Creative Open Responsible Entrepreneurial
  • 37. BASF What – our strategic principles Sustainability and Safety Verbund Management Operational excellence Learning and Growth we create chemistry for a sustainable future We add value as ONE company We innovate to make our customers more succesful We drive sustainable solutions We form the best team
  • 38. AGENDA • BASF Antwerpen NV – Strategic vision • Operational Excellence • Continuous Improvement
  • 39. OPEX Operational Excellence Lean Culture ProjectPortfolioManagement Opex Lean culture as basis to achieve Opex in a sustainable way
  • 40. OPEX Operational Excellence  Opex in Operations: Opal 21 – Implementation of a continuous improvement process  Opex in Technical Services: Service Excellence  Opex in other Services: HR full force, Ocean 2015,… Project „Opal 21“ A fundamental mindstep change by implementing the BASF PS Productivityperformance site/production Time BASF Management is convinced that • “continuous improvement” is a core task within the company, and complementary to our production process • “continuous improvement” will be a core task for EVERYONE within the company
  • 41. OPERATIONAL EXCELLENCE BASF Production System: 6 core elements Full potential of BASF production system can only be realized through interaction of all key elements Qualification Automation Process optimization Betriebliche Qualifi- zierung Motivated Employees Roles and responsibilities Optimization of plant structures Lean management Safe production
  • 42. OPERATIONAL EXCELLENCE Continuous Improvement Consolidation of the organization & definition of improvement measures 2 Disturbance of ‘daily operations' by implementing the BASF Productiesysteem ("Change") 1 3 Operational Excellence by Continuous Improvement Classical way of optimization α > 0 Operations without optimization Classical way of optimization
  • 43. Framework D C Q S P Create breakthrough results Create problem-solving capability and culture of continuous improvement
  • 44. AGENDA • BASF Antwerpen NV – Strategic vision • Operational Excellence • Continuous Improvement
  • 46. LEAN MANAGEMENT Continuous Improvement - Our Mission Statement “Day-to-day performance improvement as foundation of our organization´s culture”
  • 47. LEAN MANAGEMENT What did we achieve so far? From OPAL21 Connected to Operational Targets (OD) Request from within the organisation
  • 48.  Measure capabilities and performance on both Management and Shopfloor level LEAN MANAGEMENT Lean Performance Dialogue  No audit … new “as-is” is basis to define specific targets and LEAN efforts (improvement kata)
  • 49. LEAN is only... ...5S LEAN is only... ...a toolset LEAN is only... ...for production LEAN is only... ...bottom-up LEAN... can be done in 6 months LEAN requires a cultural transformation! What some people believe... ...deserves better answers: LEAN is to design processes without waste! LEAN is to foster mindset and capabilities! LEAN is for collaboration of all disciplines! LEAN is to realize profitable growth targets! LEAN is... ...for cutting fixed cost LEAN is only... ...for shift people LEAN is for value-adding use of resources! LEAN is a leadership responsibility! LEAN MANAGEMENT 7 common myths…
  • 50. 50 But we need to break the wall…
  • 51. 51
  • 52. 1. Leadership demonstrates belief in CI 4. From ad-hoc to development program 2. Reinforce CI roles across the organization 3. Share LEAN practices 52 A new focus based on BELIEF
  • 53. What do you think you as leadership team can do to truly understand and live LEAN, pulling the organization? A new focus based on BELIEF
  • 54. Top Management  State and communicate clear program goals  Commit to provide resources sustainably  Communicate the story for the “case for change”  Role model in LEAN leadership Plant/functional Mgt  Commit and actively live to own new role  Provide resources and assign the most skillful team  Promote and communicate change stories  Acknowledge improvement and reward employees  Celebrate success with employees! Supervisors Area Mgt  Coach the continuous improvement routine  Foster problem solving as daily core activity  Build a culture with trust to learn from failure  Cooperate with other areas - act as a team A new focus based on BELIEF
  • 55. A new focus based on BELIEF
  • 60. From craftsmanship to industrial production 1919: Foundation Van de Velde Achiel and Margaretha Van de Velde • Pioneers • 1st product: ladies corsets with an eye for quality • distribution through retailers
  • 62. From craftsmanship to industrial production 1919: Foundation Van de Velde Achiel and Margaretha Van de Velde • pioneers • distribution through retailers 2nd generation: • use of elastic materials • from the 40’s onwards  retail in Belgium and the Netherlands • Extension of assortment
  • 63. – Fashion – Marketing-driven – Delocalization of production – Cultural change – Governance change Change VdV business model
  • 64. Change business model: Fashion Design department • Team of 50 people (stylists, textile engineers, pattern makers, etc.) • 500 new styles per year • 20.000 SKU’s • Combination of fashion and fit
  • 65. Change business model: Marketing-driven Focus-strategy • Product: lingerie • Luxury Segment (= price segment)
  • 66. FOCUS: choice of market segment Segmentation of the lingerie market 80 % 70 % < EURO 20 STANDARD Hunkemöller, Etam < EURO 20 – 60 MIDDLE < EURO 60 - 100 LUXURY MJ, PrimaDonna, MJ l’Aventure > Euro 100 Sarda20 % 30 % Northern Europe Southern Europe
  • 67. Change business model: Marketing-driven Focus-strategy • Product: luxury lingerie • Price Segment • Distribution channel
  • 68. FOCUS: choice of distribution channel Distribution channel % totalmarket Positioning Van de Velde Specialized retailers 28 to 50 % X Luxury departmentstores and chains 7 to 21 % Departmentstores X Chains - Supermarkets and food 50 to 24 % - Mailorder 15 to 5 % -
  • 69. Specialist stores lose market share, but remain THE Van de Velde partner in distribution Specialist stores lose market share in most European markets • Germany : 21%, decreasing • France : 13%, decreasing • The Netherlands : 35%, decreasing • Belgium : 40%, stable
  • 70. Fit: Find the correct size Style: Choose the right cut and shape Fashion: what is the right colour for this woman and this particular situation? “STYLING” “Shaping the bodies and minds of women” www.lingeriestyling.com 3 components of Lingerie Styling
  • 71. Retail investments - USA: Intimacy - 18 stores - Turnover 2012: 33,7 mio USD - The Netherlands: Linchérie - 19 franchises - Turnover 4,8 mio EUR
  • 72. Retail investments - Rigby & Peller - England: - 7 stores in and around London − ‘Bra Fitting’ (Lingerie Styling). − Turnover 2012: 9,2 m£ − Germany: 9 stores − Spain: 3 stores − Denmark : 1 store - Hong Kong / China : Private Shop − 22 stores in Hong Kong and China − Turnover 2012: 6,7 m$ − Joint venture between Getz and Van de Velde
  • 73. Change business model: Marketing-driven Focus-strategy • Product: luxury lingerie • Price Segment • Distribution channel • Geographic focus • Brands instead of private label
  • 74. 1981: Marie Jo 1990: PrimaDonna 1997: Marie Jo L’Aventure 2009: Andres Sarda 2010: PrimaDonna Twist 2014: PrimaDonna Swim 74 Brand policy instead of private label
  • 75. Change business model: Delocalization Two tendencies • Centralization of core activities • Delocalization of production
  • 76. Change business model: Delocalization Centralization of core activities • Strategy and policy • Design • Purchases (European fabrics) • Quality control raw materials • Cutting of the fabric • Core production Belgium • Quality control and expedition
  • 77. Delocalization of production 49,5% 46,2% 4,3% China Tunesia Eastern Europe Change business model: Delocalization
  • 78. Change business model: Delocalization Delocalization of production – Quality is identical all over the world “Made in Belgium” has been replaced by “Made by Marie Jo” Conditions: • Detailed preparation of the process • Strong local management • Strict compliance rules by headquarters – SA 8000 (social label)
  • 79. SA8000 Social Accountability 8000 Requirements: 1. No child labour 2. No forced labour 3. Health and Safety 4. Freedom of Association & Right to Collective Bargaining 5. No discrimination 6. No disciplinary practices 7. Working Hours 8. Remuneration 9. Management Systems
  • 80. 9,4 42,1 78,3 111,9 166,3 179,8 181,8 182,4 198,4 0 20 40 60 80 100 120 140 160 180 200 1985 1995 2000 2005 2010 2011 2012 2013 2014 Omzet in miljoen € Van de Velde has always known a constant turnover growth
  • 81. People 1997 2000 2005 2010 2011 2012 2013 2014 Belgium 424 417 416 474 490 496 511 526 Hungary 259 322 422 - - - - - Tunisia 125 183 420 672 614 631 512 429 Spain - - - 65 60 56 27 27 Others (abroad) 27 29 36 56 58 65 60 65 Retail - - 34 227 323 316 345 325 TOTAL 835 951 1328 1494 1544 1564 1455 1372
  • 82. Van de Velde: changing organisation Before: Taylorist organisation • Centralism, control, hierarchy • Little room left for HR • Piece work • Specialization • Repetitive work • Transactional leadership
  • 83. Van de Velde: changing environment 1. Globalisation 2. Fashion driven 3. Difficulties to attract people
  • 84. Evolution towards innovation driven organisation • Lowering the brainline • Teamwork • Polyvalency • Expanding job content • Stimulating initiative • Different reward and compensation systems
  • 85. Evolution towards innovation driven organisation • Lowering the brainline • Teamwork • Polyvalency • Expanding job content • Stimulating initiative • Different reward and compensation systems • Coaching leadership / transforming Leadership
  • 86. Main responsibilities for leadership 1. Define strategy 2. Inspire 3. Continuity 86
  • 87. Qualities of good leadership • Trust • Integrity • Empathy • Ambition • Optimism • Authenticity 87
  • 88. Evolution towards innovation driven organisation • Lowering the brainline • Teamwork • Polyvalency • Expanding job content • Stimulating initiative • Different reward and compensation systems • Coaching leadership / transforming Leadership • Stimulate enthusiasm and passion
  • 89. Stimulate enthusiasm and passion • More than job satisfaction • They do more and go beyond what is called for (customers, colleagues, organization) • Welcome rather than resist change • Willing to go the extra mile
  • 90. Ratio between ‘bevlogen (enthusiastic)’ versus ‘gedistantieerd (dissociated)’ in average and top companies 8 20 29 50 63 30 Wereldtop Gemiddeld Bevlogen Neutraal Gedistantieerd
  • 91. Stimulate enthusiasm and passion How to stimulate enthusiasm? • Decisional authority • Communication/transparancy • Strategic information • Comfort information • Motivation information • Community information • Fair treatment • Systematic and honest feedback • Authenticity
  • 92. Stimulate enthusiasm and passion The best workplace on earth according to employees 1. Let people be themselves capacity to absorb different skill sets and personalities 2. Unleash the flow of information radical honesty
  • 94. Stimulate enthusiasm and passion The best workplace on earth according to employees 1. Let people be themselves 2. Unleash the flow of information 3. Magnify people’s strenghts 4. Stand for more than shareholder value
  • 95. A company is a living entity with different needs • Fysical level: profit, liquidity, solvability • Emotional level: loyalty, pride, respect, appreciation • Mental level: drive (“goesting”) • Spiritual level: internal and external connectivity
  • 96. Stimulate enthusiasm and passion The best workplace on earth according to employees 1. Let people be themselves 2. Unleash the flow of information 3. Magnify people’s strenghts 4. Stand for more than shareholder value 5. Show how the daily work makes sense 6. Have rules people can believe in 7. Inspiring goals
  • 97. “If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea.” ‘Le Petit Prince’ Antoine de Saint-Exupéry