Driving Innovation Process Effectiveness – How to overcome challenges in the execution & adoption of NPD processes as presented by Kimberly Clark and PepsiCo
Consumer goods organizations face an increasingly competitive landscape – dynamically changing trends, nimble start-ups and the expansion of store brands to name a few. Getting the right products to market efficiently and establishing competitive differentiation through bigger, better products is more important than ever. Most organizations have a defined NPD process that in theory should help produce winning products in-market, but in practice falls well short.
This discrepancy often comes from challenges not with the process itself, but rather its execution and adoption by the organization. During this interactive event you will hear from your consumer goods industry and functional peers who will discuss some of the leading practices that have proven effective in overcoming these challenges. These Innovation Process Owners will share real-life stories from leading consumer goods companies in an open dialogue that attendees can actively understand, engage and learn from.
Learn:
• How your peers at Kimberly Clark and PepsiCo addressed NPD Process execution and adoption challenges
• The top Successes they achieved at their organizations and why
• What they would have done differently in introducing or implementing their NPD process
To view this webinar in its full form, please visit http://budurl.com/x79r
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Driving Innovation Process Effectiveness – How to overcome challenges in the execution & adoption of NPD processes as presented by Kimberly Clark and PepsiCo
1. Driving Innovation Process Effectiveness
How to overcome challenges in the execution & adoption of NPD
processes
Featuring speakers from
Interact with us throughout today’s session
#InnovX
2. Strategy OfficeInnovation
Initiative
About Our Facilitators
Bryan Seyfarth, Ph.D., Director of Consumer Goods, Sopheon
Bryan is the consumer goods segment leader for Sopheon. Bryan
works with consumer goods companies globally to define and
implement innovation best practices to improve new product output and
financial success. His perspectives and analysis have appeared in such
publications as CGT and Retail Leader, and he is a frequent
conference presenter.
Scott Siegel, Senior Manager, Kalypso
Scott is a senior manager specializing in innovation strategy, global
design and implementation of new product development and portfolio
processes. He brings over 15 years of product management and
product development experience with several leading brands and
companies to Kalypso's clients.
3. Welcome to the
Consumer Goods Innovation Exchange
• Virtual series featuring knowledge-
sharing, storytelling & discussion with innovation
experts and professionals
• Real-life experiences, successes & challenges from
leading consumer goods companies
• Insight into real solutions for approaching and tackling
your biggest innovation and NPD challenges
Innovation in practice, not theory
4. Bringing Together Industry & Role Peers
Consumer
Goods Leaders
Innovation
Professionals
NPD Process
Owners
Presenters
Audience
5. Series Origin & Expectations
• Recurring challenges and experiences across the industry
• NPD process defined in theory but falls short in practice
• Executive Summits and Software User Groups but no
equivalent peer forum
Build the
Community
New
Resources
ONE Idea or
Improveme
nt
6. Strategy OfficeInnovation
Initiative
Survey Question:
Does your organization have a well-defined innovation
& new product development (NPD) process?
Crowdsourcing the Discussion
Yes, Our process is well-defined
and adopted
Yes, Our process is well-defined
but adhered to loosely.
Yes, Our process is broadly
defined but lacks specifics.
No, we are in the process of
defining our NPD process.
24%
38%
31%
7%
7. Strategy OfficeInnovation
Initiative
Survey Question:
What part of the innovation and NPD lifecycle
does your organization struggle with the most?
Crowdsourcing the Discussion
Strategic Innovation Planning
Ideation & Concept Development
Process Management
Portfolio Optimization
Other
28%
17%
31%
14%
10%
8. Strategy OfficeInnovation
Initiative
About Our Presenters
1 p.m. CDT Webinar
Tim Beattie, J.M. Smucker Company
Director of R&D, Innovation Process, Consumer SBA
Brian Vogt, Kimberly-Clark
Global Process Owner, Corporate Innovation Team
9. Our Company
A Review of our Heritage, Values, Principles, Growth and
Innovation process experience
10. Company Heritage
• Founded in 1897 by
Jerome M. Smucker
• Headquartered in
Orrville, Ohio
• Leading North
American brands
• Five generations of family
management
• Commitment to quality and
consumer trust
14. Business Segments – Our Brands
U.S. Retail
Coffee
U.S. Retail
Consumer
Foods
International, F
oodservice,&
Natural Foods
15. Our Innovation process Journey
• 6+ year journey to implement Stage Gate
– Gained alignment & Implemented our Stage Gate process in every business unit
– Manual system using Excel & Power Point templates
• Sara Lee Coffee acquisition put us over the
top – Created a need for better tools
• Mgmt. needed Portfolio mgmt. tools to
make prioritization decisions
• Increased focus on innovation vs.
acquisition
17. Early Experiences
Challenges:
• Getting each business to accept process & discipline –
seeing the need
• Business leaders saw process as limiting their
flexibility & creating bureaucracy
• Short term focus
Positives:
• Project leaders saw process as helpful – gave them
access to leaders feedback
• Process provided structure
18. Our Automation
Implementation Plan
• One process for all business units
• Build our current process into Accolade
• Minimize structured workflow
• Simplify the work we do today
• 20 week implementation – start to go live
• We do not have a program management
team – Community of Practice (COP)
19. Automation Principles
• Process governance is critical
• Clearly defined work processes are key
• How people say they do things and how
they do can be very different
• Its hard to predict the thoughts and logic
people will apply to the system
• Be prepared to train & re-train & re-train
• A Logical work flow doesn’t always
translate to the way work is done.
20. Benefits of the process
you don’t think about
• Provides roadmap for employees
• Structure within reason is helpful
• Teaches people bigger picture view
• Teaches Cross functional impact &
awareness
• Gate reviews give team opportunity to get in
front of Leadership – Big development
opportunity
• Develops your future leaders
21. Status & Whats Next
• It is 7 months after system Go-Live
• Scrub the data – insure it is correct
• Use the data – Portfolio mgmt.
• Optimize what we have
• Feedback overall is positive
• Leadership is using the data to set
priorities
22. Principles
• The simpler the better – don’t over
complicate things
• The system should not control people – it
should help them
• Gate Reviews: Focus on the information
Leadership needs to make good decisions
– don’t complicate with extraneous info.
25. Kimberly-Clark – Confidential
About Us
• Location: Dallas, TX – World Headquarters
• Sales: $21.1B
• History:
– Founded in 1872 – A Paper and Newsprint Company
– Evolved to a Consumer Products Company
– K-C has five $1 Billion dollar brands
– 57,000 employees worldwide
– Operations in 35 countries
– Products are sold in more than 175 countries
– #1 or #2 position in more than 80 countries
• Product Offerings
– Tissue products, diapers, wet wipes,
– Incontinence products, FemCare products
– Sterile wraps, safety products, medical devices
– Surgical and infection prevention products
• Segments
– Baby & Child Care
– Adult Care
– FemCare
– Family Care
– K-C Professional
– Health Care
– Global Nonwovens
25
Well-Known Global Brands
Our Vision
“Lead the world
in essentials
for a better life”
26. Kimberly-Clark – Confidential
“KCNA Consumer Innovation Journey”
26
2004
Re-launch Stage
Gate Process
KCNA Consumer
2010
Check and Adjust
of Process
2012
Global Process
Launched
2014
Beyond – Local
Processes
Outside of NA
27. Kimberly-Clark – Confidential
Three main components in our Innovation Process:
Front End
of Innovation
Stage Gate Closed loop learning, based
on in-market results
Post Launch Evaluation
& Annual Analysis
New Category
Other Innovation
Domain
Expansion
Projects
Innovation Processes
28. Kimberly-Clark – Confidential
Rolling Three-Year Net Sales from Innovation
2010
Actual
2011
Actual
2012
Actual
2013
Actual
$MM
2014
Forecast
2015
Enterprise Goal
Business Results –
Current plans give confidence
we can achieve our goals
29. Kimberly-Clark – Confidential
Successes/Leading Practices
Driving Innovation Process Efficiency
How to overcome challenges in the execution & adoption of NPD processes
29
Leading Practice How Implemented
1 Local process owners –
Provide support for the teams
• Convinced businesses that roles
were crucial
• Created a Global Network
2 Continuous Learning • Assess the in-market/executional
performance of each project
• Annual results analysis performed
3 Right Sizing of the Process • We designed the local process with
the regions involved
• Right balance of structured
entrepreneurship to meet business
goals
30. Kimberly-Clark – Confidential
Challenges
Driving Innovation Process Efficiency
How to overcome challenges in the execution & adoption of NPD processes
30
Challenge How Addressed
1 Stakeholder Management • Identified the local market key
challenges and designed the process
to address their needs
2 Process Sustainability • Getting the local process owners in
place
• Developing leader standard work
• Example: Cellphone app
31. Kimberly-Clark – Confidential
Closing Thoughts
One size
does not
fit all
Different
Capabilities
Different
Needs
Freedom within
a Framework
Local Ownership
Listening is Key
32. “Crowd-sourced” Q&A
KEY THEMES
• How to Achieve a Truly Cross-Functional Process?
• How to Leverage Process Strengths/Overcome Weaknesses?
• How to Conduct Training/Change Management?
• How Do You Create Incentives for Adoption?
• How to Apply the Right Process to the Right Projects?
• How to Manage Process Changes/Continuous Improvement?
• What Are Best-practices for Process Post-launch?
33. Events in the Series
Driving Innovation Process
Effectiveness
How to overcome challenges in the execution
& adoption of NPD processes
Thursday, March 20th
Making Innovation Global
How to support standard innovation and NPD
processes across the organization
Thursday, April 24th
Improving Decision-Making in Gate
Meetings
The right data, people and processes to
deliver value
Thursday, May 15th
bit.ly/innovation
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events
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• Access onDemand
SCOTT: Good morning everyone, I am Scott Siegel, Senior Manager with Kalypso and along with Bryan Seyfarth - Director of CG from Sopheon, we’d like to welcome you to the first installment of the Consumer Goods Innovation Exchange series. The Consumer Goods Innovation Exchange is a recurring Roundtable series of 3 web events this Spring that will feature knowledge-sharing, anecdotes and discussion from a variety of leading consumer packaged goods organizations. Kalypso and Sopheon have teamed up with Innovation leaders from Pepsico, Kimberly Clark, the JM Smucker Company and others to share with you their real-life experiences, challenges and successes of leading the Innovation processes and cross-functional teams at their organizations.Our vision for this series is that we can present firsthand experiences, but then from there, more importantly – through this Series - foster a dialogue and a shared learning environment that will bring you insight into real solutions taken by your consumer goods peers. Many of you face exactly the same external (market) and internal (adoption & execution) Innovation challenges - it is our hope that many of these solutions and ideas can be introduced or adopted at your individual organizations so that you too can overcome some of your innovation challenges to deliver better results in-market.Today’s session is focused on Innovation Process Effectiveness and how to overcome challenges in the execution and adoption of NPD processes.Part 2 of the series will be held in April focusing on ‘Making Innovation Global’ and then finally in May we will wrap up with an engaging 3rd session on ‘Improving Decision-Making in Gate Meetings’Add something else to tie up this slide and move to the next
BRYAN: What makes the Consumer Goods Innovation Exchange Series different from the myriad of other webinars and podcasts that you might be invited to can be found in the actual name of the series.It is a Consumer Goods, Innovation, Exchange SeriesBoth the presenters that we have assembled today along with audience that we have invited are industry and role peers.Those of us participating today are all in the Consumer Goods industry, we are all Innovation process and/or Portfolio OwnersAnd as mentioned earlier, the key to the value and success of this series is in the “Exchange” – the dialogue, the Q&A, the reflection on ideas and leading practices that we can all learn and share from each other. These are your peers. Today for instance we have:Tim Beattie (Director of R&D, Innovation Process) from SmuckerandBarbara Burns ….from KimberlyPresenting. The presenters and the audience share the similar roles, with similar responsibilities, expectations and challenges. What’s more – it is all being done against the same Consumer Goods industry backdrop with its unique nuances and opportunities.
SCOTT: OriginsThe idea for the CGIE came about from a series of discussions…realizations that Brian and I (or Scott and I…or Kalypso and Sopheon) had from what we were seeing with our colleagues in the market.First – it was clear from sitting in meetings and having discussions that time and time again we were continually hearing the same challenges and experiences related to the CPG market. Store brand competition, last minute changes from retailers, Wal-Mart being Wal-Mart…it was clear that tSecondly, it became quite apparent that every company – big or small, global or local, upstart or established – it didn’t matter - everyone had a well-defined and documented NPD Stage-Gate process. Most likely they had variations based on the type of project – with label changes requiring less rigor than a line-extension which had less deliverables or data inputs as compared with a new-to-the-world product. Regardless, in 2014 there are very few CPG companies without a defined NPD process. However, the adoption and execution of this process was where they were failing. Whether it was because team members felt it was too onerous or they were lacking the executive support or vision – the problem was not with the actual process – it was with the people adopting or effectively using the tools and process the were provided.Finally – as we all see and are invited to…there are many executive seminars – perhaps tailored to the VPs of R&D or Chief Innovation officers. And certainly software companies tout their User Groups as an opportunity to learn and improve. While these events certainly have value – they aren’t tailored and focused to the needs and unique challenges faced by the group of presenters and audience members that we have gathered for this series. Innovation Process Owners in the CPG industry.ExpectationsOur hopes for the series, and starting with today’s session is, if nothing else, if each and everyone of you come away from today’s session with just 1 idea or suggestion that you hear from our presenters or during the follow-up dialogue – that you can take back to your organization and try – to see if it yields some improvements. While we’d like it if you take down a list of 4-5 leading practices or ideas – following one of the themes of this series – we’d like to keep it practical and ‘real’. So again, at the very least – if each any everyone of you applies 1 new idea to improve the adoption and execution of your NPD process from what you learned today – that would be a success.From that 1 idea…we’d like to build this Exchange series with our next 2 installments to begin building this as a Community and a new resource for you and other CPG Innovation Process owners to glean, learn and share ideas to improve your Innovation, NPD and Portfolio processes.
Open with personalized introductory remarks tailored to specific audience / organization.Thank you for the opportunity to meet today and provide a brief overview on The J.M. Smucker Company.Over the next few minutes, I’d like to share about the heritage, values, principles, and growth of our Company including:Background on the history of our Company – who we are and how we do business;An overview of our Strategy;And a look at the transformational growth of the Smucker Company over the past decade.
The J.M. Smucker Company was founded in 1897 when Jerome Monroe Smucker sold apple butter from the back of a horse-drawn wagon. Each crock bore a hand-signed seal as his personal guarantee of quality, a practice we continue today.Now, under the management of fourth- and fifth-generations of Smucker family leadership, we continue to stand behind our guarantee of quality.Today, we operate more than 20 manufacturing facilities in North America with more than 5,000 employees, and we distribute product to more than 45 countries.
Our family of employees recognizes we can have a positive and meaningful impact on society through our continued focus on Our Purpose of helping to bring families together to share memorable meals and moments.We are honored consumers choose our iconic brands and portfolio of trusted products as part of their everyday meals, snacks shared with friends, and family celebrations. It is through these times that we connect with each other, nurture relationships, build meaningful traditions, and create lasting bonds with those most special to us.
Strategic acquisitions have helped fuel our growth from a company focused on fruit spreads into a diversified food manufacturer.We made our first transformational acquisition in 2002, purchasing the Jif ® peanut butter and Crisco® shortening and oils brands from Procter & Gamble. In 2004, with the acquisition of International Multifoods we added Pillsbury® baking products, Hungry Jack® pancake mixes and syrups, Robin Hood® flour, Bick’s® pickles and Martha White® baking mixes.In 2008, we closed on the largest transaction in our Company history, when we acquired Folgers®, Millstone® and Dunkin’ Donuts® retail coffee brands from P&G. Café Bustelo and Cafe Pilon, leading Hispanic espresso brands, joined the Smucker family of brands in 2011. Since 2012, we acquired Sara Lee’s North American foodservice coffee and hot beverage business, obtained a minority interest in Seamild, a leading oats company in China, and acquired Enray, a leading marketer and manufacturer of gluten-free, ancient grain products sold under the TruRoots brand.
The last decade has marked the largest period of growth in Smucker history. Since 2001, we have grown from $600 million in sales to nearly $6 billion.
The J.M. Smucker Company is structured into three Strategic Business Areas or SBAs.U.S. Retail Coffee, home to Folgers, Dunkin’ Donuts retail bagged coffee, Millstone, our Hispanic espresso brands of Café Bustelo and Café Pilon, and our most recent addition Life is good.U.S. Retail Consumer Foods encompasses our namesake brand Smucker’s as well as additional iconic brands like Jif, Pillsbury baking, Crisco, Eagle Brand and Hungry Jack, among others.International, Foodservice and Natural Foods SBA encompasses sales outside of our U.S. retail markets.
Sara Lee acquisition – The integration of this business required a large number of resources that had to be pulled from other work being done in the organization – the leadership team did not have any good system to provide an efficient way to make choices
Our work processes as we defined them – remember we were designing a system that spanned multiple business units with different ways of doing things
Our achievements demonstrate that our commitment to “doing the right things and doing things right” as we seek to fulfill Our Purpose benefits all our constituents – consumers, customers, employees, suppliers, communities, and shareholders.Personalize closing comments for audience.Thank you.
Speaker Notes:2004 – Re-launch = Templates and consistency of data Prior to this, each business had their own process, and this initiative was to get everyone on the same playing field with process2004-2010 – We ran the process, but did not really have clear ownership of the process – Process management suffered – Recognized we had gaps2010 – Fix - added a NA process owner to re-align the consumer businesses2012 – Launched our global sectors, developed process to support our global initiatives 2014 – Right sizing the process to win in the local market – One shoe does not fit all – Using the global guiding principles, but scaling to win
Speaker Notes:Continuous Learning - We have continued to improve the process to deliver in market success. #1 – We were successful in convincing the businesses that these roles were crucial for success – Also, created a Global Network to provide support and build capability for people in these roles#2 - We assess the in-market/executional performance of each project – Also, we do an annual results analysis across the businesses to see systemic issues# 3- To prevent the process from becoming an over burden, and having them walk away. WE have been able to Sustain with this practice. Example – don’t have to use all the gates, except mandatory BFC and PEARL.
Stakeholder Management = In NA, we have a lot of structure in place because our businesses are so big. Because of this, we tend to not be as nimble as some of our smaller businesses. Identified the local market key challenges and designed the process to address their needs. Example: IN some markets may have 4 gates, other markets may just have 1Outside of NA – Reputation is that this is a big, complicated process that is going to slow down the local, smaller businesses. Showing them data and what works for them, they can see how the data will help drive success and meet their goals. Coming in and working with them.Process Sustainability – due to organization turnover; By having leaders perform their LSW, this will help ensure that the process is followed, and with sustainabilityLeader standard work is key for sustainability. Developed cellphone application which helps Leaders with what questions to ask for each gate.. Probing questions
Approach with regions – Listening = KeyK-C’s culture of inclusion and collaborationKey to process owners is that they understand what the business do and what their challenges are – if you don’t, you will struggle / more challengingSustainability key – Getting people to own the local process and ownership at the leadership level.As our businesses and markets have different end consumers, our challenge is to define flexible process and data requirements that reflect those different consumer needs but also allow an appropriate level of standardization:Freedom within a Framework: Give each business/market the freedom to collect data that is important for local decision making, but also needed a standard data set to enable corporate reporting on key metrics.Different capabilities: Many of our processes are adapted from North America (most advanced). We must understand that overseas markets will have capability work to do to get to any standards, and we must work with local teams to bridge those gaps.Different needs: Markets and businesses have different needs and constraints that they are solving for; our solutions must provide them local benefit or we will experience adherence challenges.
a series of complimentary resources to provide insight into best practices for approaching and tackling your biggest innovation and NPD challenges.Focus on peers in the consumer goods industry, and will include time for interactive discussion around key topics
a series of complimentary resources to provide insight into best practices for approaching and tackling your biggest innovation and NPD challenges.Focus on peers in the consumer goods industry, and will include time for interactive discussion around key topics