©2010 EFQM

Volvo Pegasus Case

©2010 EFQM 2

Agenda

• Introduction

• Pegasus Approach

• Volvo Case Study

• Key Learnings & Contributions

Introduction

• Jos van Valkengoed

• Since October 2010, Global Sales & Operations Planning Senior Director for Philips Lighting

• From June 2008 till October 2010, Senior Director Business Improvement for Philips Lighting

• Prior Philips, Worked 12 Years for GE within Different Positions:o Global Lexan PSI Leader for GE Plastics

o Master Black Belt for GE Plastics

o Audit Manager for GE Corporate Audit Staff

o Auditor for GE Corporate Audit Staff

o IMLP for GE Capital

©2010 EFQM

©2010 EFQM 4

Agenda

• Introduction

• Pegasus Approach

• Volvo Case Study

• Key Learnings & Contributions

Pegasus Programme seeks to reinforce strategy implementation capabilitiesOur goal: understand how strategy is turned into action. This starts from understanding the business in context, leads through structured review and feedback, and ends with proposing change.

©2010 EFQM

This week (3 days) Company visit (4 days)

Competition

Market Segment

Value proposition

Capabilities

Financial viability

Case for change

Action programme

Communication plan

Plan Deliver and review

From business scan

Strategic

Challengesto

implementation

Red threadto

Assessment

planto

Interviews

and assessmentto

Feedback and key message against strategy

to Change programme

to

©2010 EFQM6

Structure of this week

Setting personal goals Reviewing the strategic context Building strategic Red Threads

Day 1:

Business Scan and strategic challenges

Understanding links with implementation

Identifying implementation Red Threads

Day 2:

Implementation Red Thread

Structuring an assessment plan

Giving effective feedback and structuring change

Day 3:

Assessment Plan

©2010 EFQM7

The steps in this programme

Plan Deliver and review

A B C D E F

©2010 EFQM8

Pre-work

Information from host

Internet search

Your assumptions

+

+

=

Your notes of

keythemes

Your question

s

A

©2010 EFQM9

Forming the team’s first hypothesis

????

Team questions

Each person’s questions

Team view “rough first hypothesis”

Each person’s key themes

B

‘Business fundamentals’

Strategic challenges & opportunities

©2010 EFQM10

Refining the hypothesis by strategic analysis

?

?

Team use strategic analysis techniques to understand the key issues of Host Company

- business context

- value proposition

- operating performance

- key competences

- profit potential

Rough first hypothesis & questions

Refined hypothesis1

C

©2010 EFQM11

Sharpening the view, using EFQM Excellence Model and RADAR

EFQM methodology

?

Refined hypothesis1

D

A

DA&R

R

?

?

??

Draft Investigation

brief

©2010 EFQM12

Creating a company visit to test the hypothesis and propose change

+ =

Meeting with Company reps

Company visit plan

?

?

??

?

?

??

E

Draft Investigation

brief

©2010 EFQM13

Completing the assessment, offering feedback and proposing change

company visit

companyvisit plan

feedback and ideas for change

to company

your ongoing development

?

?

??

F

©2010 EFQM 14

Agenda

• Introduction

• Pegasus Approach

• Volvo Case Study

• Key Learnings & Contributions

Multi Disciplinary Team From 5 Different Industries …

©2010 EFQM

Mark FinnieUnited Kingdom

Marketing Director

Strix Ltd.

Technology

Bart Muldersthe Netherlands

Manager Hi Retail

KPN Telecom

Telecom Industry

Matthias SchneiderGermany

Business Unit Manager

T-Systems

Telecom Industry

Chris YatesUnited Kingdom

Resource Manager

Lloyds Banking Group

Financial Services

Paul MackUnited Kingdom

X E Customer & Emp. 1st Manager

Xerox Europe

Technology

Jos van Valkengoedthe Netherlands

Senior Director Business Improvement

Philips Lighting

Technology

Volvo Car Customer Service Challenge …

• Review the new strategic agenda and direction (VCCS Revenue Agenda)

• Review if our business positioning seems reasonable given our business environment

• Suggesting KPI’s that will enable us to follow up and reach our new strategic challenges

• Review if our current organisation and business model has the capability to deliver according to our expectations

©2010 EFQM

Methodology

©2010 EFQM

Brussels (3 days) Volvo visit (4 days)Competition

Market Segment

Value proposition

Capabilities

Financial viability

Case for change

Action programme

Communication plan

Plan Deliver and review

From business scan

Strategic

Challengesto implementation

Red threadto Assessment

planto Interviews

and assessmentto

Feedback and key message against strategy

to Change programme

to

• Pre- work (Brussels) … Completed Assessment Plan With Formulated Hypothesis

• To Validate & Test Hypothesis … Completed 30 Interviews Within Volvo, Joined MT Meetings & Visited Dealers

• Reported Back Robustness VCCS Strategic Plan & Provided Detailed Recommendations

• Conducted 1 Day Workshop With VCCS MT

©2010 EFQM 18

Agenda

• Introduction

• Pegasus Approach

• Volvo Case Study

• Key Learnings & Contributions

Key Learning for Me

• Opportunity to Benchmark Another Company, Who is in Transition

• Learn About Volvo Car Customer Services (VCCS) Challenges, Risks & Opportunities … Their Strategy to Deal With This

• Worked With Peers from Different Companies & Sectors … Due to Short Project Cycle & Intensity, Went Thru Full “Forming, Storming, Norming & Performing” Cycle

• Added 5 Great Colleagues to My Personal Network

©2010 EFQM

Key Learning for Volvo

• An Independent Opinion On Strategic Agenda, Organizational Setup and KPI’s … an Outside In View

• Best Practice Sharing on KPI’s

• Understand How Other Companies are handling Key Transformations

• One Day Workshop to Turn Opinion into Actions with Owners & Deadlines

©2010 EFQM