The Siemens UK Journey to Excellence using the EFQM Excellence Model

Dr Ian May Business Excellence Consultant, Siemens UK The Siemens UK Journey to Excellence using the EFQM Excellence Model Restricted © Siemens plc 2...
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Dr Ian May Business Excellence Consultant, Siemens UK

The Siemens UK Journey to Excellence using the EFQM Excellence Model Restricted © Siemens plc 2013 All rights reserved.

siemens.co.uk

Our journey uses this map…

Results

Enablers Leadership

People

Processes, Products & Services

People Results

Strategy

Customer Results

Partnerships & Resources

Society Results

Business Results

Learning, Creativity and Innovation

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

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The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Who is Ian May?

Worked for a number of organisations in a variety of roles and countries

16 years with Siemens as a Business Excellence Consultant

Assessment Team Leader for the EFQM European Excellence Awards for 17 years – the best training on good practice you can get – all our high potential junior leaders do this

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Ian May – My activities across Siemens UK

EFQM Assessment: Internal Assessment & Assessor training

Business Strategy:

Design of the strategy process

Support in external Assessment (Regional, National and European)

Facilitation of the strategy process

Identification of best practice, sharing of best practice

Measurement of strategy

Facilitation:

Siemens UK top+:

Process Improvement:

Facilitation training

Support of the top+ Board

Process improvement training

Support of the top+ intranet

Process mapping

top+ Best Practice sharing

Specific process improvement

Siemens UK BQF & EFQM representative

Project facilitation

Design of events

Facilitation of “difficult” events

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 5

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

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The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

About Siemens UK – The Sectors Industry

Infrastructure & Cities Building Technologies

Industry Automation

Low and Medium Voltage

Drive Technologies

Smart Grid

Cross-sector activities

Customer Services

Mobility and Logistics

Metal Technologies

Rail Systems

Energy

Healthcare Siemens Financial Services

Fossil Power Generation

Imaging & IT

Renewable Energy

Clinical Products

Oil & Gas

Workflow & Solutions

Service

Diagnostics

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 7

UK Organisation Infrastructure & Cities Sector Infrastructure & Cities Sector Head – Gordon Wakeford Rail Systems

Mobility and Logistics MD Gordon Wakeford

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Low and Medium Voltage

Smart Grid

Building Technologies

Making business improvement ‘business as usual’ for every Siemens employee in the UK

UK Organisation Infrastructure & Cities Sector Infrastructure & Cities Sector Head – Gordon Wakeford Rail Systems Rail Automation

Mobility and Logistics MD Gordon Wakeford

Low and Medium Voltage

Smart Grid

Traffic Solutions

Building Technologies

Infrastructure Logistics

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 9

UK Organisation Infrastructure & Cities Sector Infrastructure & Cities Sector Head – Gordon Wakeford Rail Systems

Mobility and Logistics MD Gordon Wakeford

Low Voltage

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Low and Medium Voltage

Smart Grid

Building Technologies

Medium Voltage

Making business improvement ‘business as usual’ for every Siemens employee in the UK

UK Organisation Infrastructure & Cities Sector Infrastructure & Cities Sector Head – Gordon Wakeford Rail Systems Energy Automation

Mobility and Logistics MD Gordon Wakeford

Low and Medium Voltage

Smart Grid

Rail Electrification

Building Technologies

Metering

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 11

UK Organisation Infrastructure & Cities Sector Infrastructure & Cities Sector Head – Gordon Wakeford Rail Systems

Mobility and Logistics MD Gordon Wakeford

Fire Safety & Security

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Low and Medium Voltage

Smart Grid

Building Technologies

Control Products & Systems

Making business improvement ‘business as usual’ for every Siemens employee in the UK

UK Organisation Infrastructure & Cities Sector Infrastructure & Cities Sector Head – Gordon Wakeford Rail Systems

Mobility and Logistics MD Gordon Wakeford

Rail Automation

Low and Medium Voltage Low Voltage

Traffic Solutions

Smart Grid

Energy Automation

Restricted © Siemens plc 2013 All rights reserved. Page 13

Fire Safety & Security

Rail Electrification Control Products & Systems

Medium Voltage

Infrastructure Logistics

Building Technologies

Metering

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Our values – highest performance with highest ethics

Responsible Committed to ethical and responsible actions

Excellent Achieving high performance and excellent results

Innovative Being innovative to create sustainable value

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Siemens UK in numbers

12 Manufacturing facilities

28 Major Siemens sites

13,520 UK employees

£3.2bn Revenue in 2012 Official figures: FY13 Making business improvement ‘business as usual’ for every Siemens employee in the UK

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365 days a year, 24 hours a day…

We read meters in more than 14 million homes and businesses in the UK

Every working day, our medical equipment screens 15,000 women in the UK for breast cancer

We manufacture and maintain more of the UK’s road traffic infrastructure than any other company

12

Our trains carry 16,000 passengers between London Paddington station and Heathrow Airport every day

We finance assets for more than 90% of the FTSE 100 companies

More than a third of the UK’s mainland electricity supply is generated using our equipment

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We provide more 50% of the UK’s wind turbine generating capacity

In addition to railway stations, Siemens security systems can be found in Harrods department store

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

Restricted © Siemens plc 2013 All rights reserved. Page 17

The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

THE CHANGE TO ANYTHING FOLLOWS A SYSTEMATIC PATH

Analogy: Restricted © Siemens plc 2013 All rights reserved. Page 18

The Wild West Making business improvement ‘business as usual’ for every Siemens employee in the UK

nobody's been there before

EXPLORERS Go with the change because its new Restricted © Siemens plc 2013 All rights reserved. Page 19

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Need to know it’s good, will enjoy the challenge of the bears and the Indians

PIONEERS

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Need to know it’s safe,

Bears dead

Indians civilised

SETTLERS Restricted © Siemens plc 2013 All rights reserved. Page 21

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Take the place of the bears and the Indians

OUTLAWS Restricted © Siemens plc 2013 All rights reserved. Page 22

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

Restricted © Siemens plc 2013 All rights reserved. Page 23

The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Early Adoption of the EFQM Excellence Model

Sustainability

EXCELLENCE Increased Profitability

Continuous Improvement

2002: Communications won UK EE Siemens UK engage with BQF & NoEE

Implementation

Assessement Output Used – Little Publicity Given to Model Congelton Communcations, Healthcare and Transmissions & Distribution

Philosophy

Next Stage on from Quality Management Interest Gained

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

But during this stage Business Excellence progress was slow and painful at times

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 25

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

Restricted © Siemens plc 2013 All rights reserved. Page 26

The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

2002 – 2008 Business Excellence becomes a driver of business improvement

Regional & National Awards

Assessment made Mandatory

Excellence Model

Recognised Benefits

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Annual Strategic Review

Pinch with Pride

Fully Embraced?

Making business improvement ‘business as usual’ for every Siemens employee in the UK

The British Disease: There are five frogs on a log

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

So some businesses do not appear as first thought – Fed Ex example

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 29

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

Restricted © Siemens plc 2013 All rights reserved. Page 30

The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Business Excellence Framework for sustainable value creation One The integrated technology company

Financial target system Outperforming revenue growth Siemens

Growth (nominal) > most relevant competitors M&A hurdle rates

Sectors

Capital efficiency / ROCE

Capital structure

SFS ROE

Dividend payout ratio

Top EBITDA margins of respective markets throughout business cycles

Continuous Improvement in relation to market & competitors Restricted © Siemens plc 2013 All rights reserved.

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 31

Business improvement opportunities through EFQM were gaining approval Clear framework of assessment progression

EFQM Assessment was no longer mandatory… ..but most businesses then use it as a key input to strategy review!!

Lite

Qualification File Internal

Significant value add through improvement suggestions

R4E Active support of our improvement community

UKEA

Pinch with Pride

EEA

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Producing Qualification Files were very Helpful in avoiding misunderstanding

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

This was supported by our top+ Business Excellence Board Aim

Business Excellence Making business improvement

‘business as usual’ for every Siemens employee in the UK

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

What is Top+ ?

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 35

And we achieve this aim through…..

The “pull” approach – we are a signpost to best practice

Through EFQM assessment & benchmarking

Through our top+ BE Community of 190 people

And through our National and regional external best practice events and seminars

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Through “Ask a question”

Making business improvement ‘business as usual’ for every Siemens employee in the UK

The top+ BE Board has representation from all areas of Siemens UK

Chair – Gordon Wakeford Energy – Dan McGrail IC – David McIntosh, Steve Blakeman, Chris Beadsworth Industry – Sue Bagguley Healthcare – Ian Clarke, Ralf Seidler, Shaun Knights Corporate – Jane Hart, Jennifer Newton Cross Sector – Steve Ashton, Graham Jones, Marcus Hall, Paul Hodgkins Secretary – Ian May

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 37

KEY:

Industry Healthcare Infrastructure & Cities Energy

Summit (1000 points / 29,035 ft) Bosch, Drives Congleton, Healthcare Sales & Service Industry Automation & Drives

In sight of the summit

Metering, Communications and Services, Transmission

On Oxygen

Traffic Solutions Rail Systems Service Fossil Industrial Power Lincoln Protection Devices

Past 21,000 ft

GSS Operations ,Water Technologies Fossil Instrumentation & Electrical Renewables Onshore, Renewables Offshore Fossil Energy Services Building Technologies Rail Automation Mobile Communications Medium Voltage, Service Smart Grid

Well on their way

Electricity Alliance North, Service Renewables, Metal Technologies, Corporate Legal, Business Development and HR, Low Voltage Diagnostics Sudbury SRE, Magnet Technologies, Logistics and Airport Solutions, Rail Automation Control and Information Restricted © Siemens plc 2013 All rights reserved. Industry Off piste: Page 38 Software

Left Base Camp

Base Camp, 100 points, 17000 ft Diagnostics Llanberis

Making business improvement ‘business as usual’ Corporate for every Siemens employee in the UK Oil & Gas UK Financial Services Finance

Case Study A: Employee Engagement & EFQM Journey North of England Excellence

700

BQF UK Excellence

UK Excellence Achievement Award Leadership

North of England Achievement award People & People Results

600 500 EFQM Score 400

83%

71%

300 200

68%

68%

62%

100

EFQM Score Employee Engagement Restricted © Siemens plc 2013 All rights reserved.

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 39

Case Study: Business B and C show a clear relationship between profit and assessment score

UK Midlands Excellence Excellence Finalist Winner

UK Excellence Winner

B

UK Excellence UK Finalist Excellence Finalist

UK EFQM Excellence Excellence Winner Winner

UK Excellence Winner

Award Year

C Profit Restricted © Siemens plc 2013 All rights reserved. Page 40

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Case Study D Recognition

Selected Key Performance Indicators

2007

Awarded Committed to Excellence status

2008

Internal Won BQF Achievement Award for Process Improvement & Highly Commended Best Electronics Plant& Assessor training

2009

Won Southern England Excellence award

2010

Won Best Factory Award & won Best Electronics and Electrical Plant Award Highly Commended for People Management & Skills development.

Profit in %

Sales

+23% +31%

Sales per employee

-10% Manufacturing

Overhead Costs

Produced hours per head increased from 1213 to 1314 per year (8% increase)

2007

2008

2009

2010

2011

2012

3i suggestions per head increased from 4 to 8.8 per year.

Restricted © Siemens plc 2013 All rights reserved.

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Page 41

Agenda

About Siemens UK

The Progress of Change the Wild West The Explorer years 19952002

About Ian

AGENDA The Pioneer years 20022008

Q&A

The Future

Restricted © Siemens plc 2013 All rights reserved. Page 42

The Settler years 2008 Present

Making business improvement ‘business as usual’ for every Siemens employee in the UK

Business Excellence is gaining momentum thanks to Awards & financial performance improvements Our business excellence/business improvement/quality priorities and activities will be: More BE assessment, More sharing, Greater benchmarking, More involvement in benchmarking in Europe

The tools and techniques we will be using are: EM Assessment, Lean, Pinch with pride (supported by strategically identified benchmarking needs)

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Systematic benchmarking with the EFQM

Making business improvement ‘business as usual’ for every Siemens employee in the UK

THANK YOU Dr Ian May Business Excellence Consultant Siemens UK Mobile: +44 (0) 7808 822 394 E-mail: [email protected] siemens.co.uk

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Making business improvement ‘business as usual’ for every Siemens employee in the UK

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