Global enterprise operating system, leverage best practice benchmarking  - Modus Media International case study

When Ron Leitch at Modus Media International (MMI) took up his role as Global Process and Technology Officer the first task assigned to him was, ‘Find out how good the business processes are’. No easy assignment when your organisation has over 20 plants (solution centres) in 12 countries, across the world.

MMI are global suppliers of outsourced manufacturing and fulfilment for the likes of IBM, Palm, Handspring, Hewlett-Packard and Microsoft. MMI’s solution centres were all engaged in the same business processes, but the detailed design and execution of these processes varied considerably.

Ron had three problems; the first was that there was no measure of process design or application throughout the organisation. This made it impossible to find out how good, or bad, the processes were. Secondly, although areas of best practice undoubtedly existed within the business it was difficult to know where. This created the third problem: it was not possible to leverage best practice or to create processes that performed to consistently high standards across the globe.

The first step was to create a business model that defined the 50 or so processes at which MMI needed to excel. The model was depicted in a graphical representation which was used to communicate the vision effectively throughout the organisation, at all levels. ‘GEOS,’ The Global Enterprise Operating System, had been born!

The company has used GEOS to train all its employees in ‘process thinking.’ It has even shown the model to customers and suppliers, and their feedback has been enthusiastic. A customer in Asia commented on the ‘clear competitive advantage’ it gave the company and how they were ‘awed by MMI’s system and global mindedness’. Another blue chip hi-tech company was so impressed they wanted to use it in their own business.Having defined the model, WCI and MMI then set about creating a benchmark to measure how well the key processes were performing.

Unlike other benchmarks which compare process output across different businesses, the WCI approach is to look at the processes themselves. Each process is broken down into a defined set of attributes and for each of these a maturity profile is described, from very poor practice to World Class. Therefore, in scoring their process designs MMI were able to calibrate not just their own performance but also to understand what World Class performance was going to look like.

WCI trained teams of MMI teams to carry out the assessments at their own solution centres. This not only enhanced MMI’s understanding of the content and approach but also meant that they believed the results when they were published.Soon after completing the assessment, MMI quickly established an internal database of all their best practice processes across the group. So, if somebody needed help improving an under-performing process it became very easy for them to identify and contact the source of help.

Sounds simple, but large companies aren’t good at sharing knowledge as a norm.However, it became immediately clear to MMI that the benchmarking results demanded some specific interventions in a number of key areas. In particular the supply chain processes, although by no means completely broken, needed further work to bring them up to World Class standards consistently across the group.

So, these processes were targeted for transformation and have been redesigned, with WCI’s help, using the same World Class principles that are enshrined in the benchmark. And the benefits, including lower inventories, improved customer service and higher efficiencies, are already rolling in.In reflecting upon the success of the programme Ron Leitch, now President of the America’s Group says, “GEOS represents for MMI a unique tool to create relative views of the critical process drivers within our organisation. The resulting self-awareness as individuals and as a Company has been transformational. WCI has been an outstanding thought leader in this arena with a great ability to coach our company through this process. I believe the intangible value of our company is now on a path of exponential expansion”.