RPC Blitz Challenge


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RPC Blitz Challenge



How might Roche Procurement expand the strategic value it delivers to the business—operating as One Procurement? 

 

On January 19–20, 2016, the Roche Procurement Committee (RPC) gathered in Yountville for the RPC Blitz. The Blitz was an intensive, immersive effort to Think Wrong about how Procurement can expand the value it contributes to the business so that Roche might serve and benefit even more patients.

 

Our focus

  • Business value (over procurement value) 
  • Business partner alignment 
  • Supplier innovation 
  • People 

Our objectives

  • Explore the impact that Procurement might have for the business and patients 
  • Explore how Procurement might best be understood across Roche and the industry 
  • Explore how to tell a compelling Procurement story 
  • Explore what will need to be done to keep the promises of that compelling story 
  • Explore and agree how the RPC might work even more effectively as one team—and how all of Procurement might operate as One Procurement

Desired outcome

  • A strategic vision that builds on the foundation of the 10 RPC Strategic Initiatives 

 

RPC Blitz Approach


RPC Blitz Approach



Think Wrong


We thought wrong about the impact that the RPC might achieve through One Procurement.

 

Think Wrong Practices

Dream about the difference we might be able to make.

Seek fresh inspiration for status quobusting ideas.

Imagine what’s possible beyond the biases and orthodoxies that hold us back.

Build to gain greater clarity about the potential of our emerging solutions.

Learn through doing and decrease innovation risk.

Share what we learn and the insights we gain to speed up our time to impact.

Future_Process_Balls_Color_072715.png
 
 

Think Wrong Drills

Deflection Point
Moonshot
So That...
Eulogy
8-Word Impact
Framer-in-Chief
When...

 

 

Loathe to Love

Draw It
 

 

Matters Most
Impact x Doability
SASU
Waypoints


 

 
 

RPC Blitz Outcomes


RPC Blitz Outcomes



New insights, sharper focus, better alignment, greater impact.

 

The RPC had an open and strategic discussion about our strategy, platforms (systems, tools, processes), people, ways of working together, value delivery, and reputation.

We confirmed the aspiration and strategic intent for One Procurement at Roche:

We want to become a strategic business function delivering more value for the business—and ultimately for our patients.

We reviewed the 2015 RPC goals, which were all met or exceeded. We discussed the overall progress made last year, and analyzed where we need to improve.

 
 

We will collaborate and align even more closely with Finance and Nexus. We also decided that adding Carsten Reibe as a member of the RPC will allow us to align earlier; make decisions faster; increase speed and deliver more guidance; leadership, and value.

 

The RPC streamlined the Strategic Initiatives/Projects and agreed on the 2016 RPC goals and priorities.

In addition to the Joint Operating Model and delivery of the PPSC projects, the 2016 goals include Savings, C4C, DJSI, prioritization leveraging a joint RPC project portfolio, and clarifying roles and responsibilities as well as decision making among the various Procurement teams and committees.

 


Our Impact Vision

We stepped back, opened the aperture, and imagined the impact that we might have as One Procurement.

We inspire innovative procurement to deliver results with pride.

We deliver bold sourcing to transform Roche.

We enable supplier innovation, bringing care to more patients.

 


Joint Operating Model

We explored how we might work together even more effectively in areas such as strategy, decision making, resourcing, and eliminating redundancies.

Inspired by earlier work completed by the GPPLT and Diagnostics, the RPC agreed to develop a Joint Operating Model. As an integral part of this joint operating model, we will also develop a joint SSC (Shared Service Center) procurement strategy.


Focused Strategic Initiatives

We focused on the strategic imperatives that would have the greatest impact and reprioritized our strategic initiatives to support those.

Over the course of the RPC Blitz we were able to identify those initiatives that would make the greatest contribution to achieving our impact vision and that would lay the best foundation for One Procurement. Other initiatives were either pushed back to a later start date, reassigned, or retired.


2016 Goals and Priorities

We set clear and achievable goals and priorities based on our refreshed strategic imperatives and initiatives.

In addition to the Joint Operating Model and delivery of the PPSC projects, our 2016 goals include: 

  • Savings
  • C4C
  • DJSI
  • Prioritization leveraging a joint RPC project portfolio
  • Clarifying roles and responsibilities as well as decision making among the various Procurement teams and committees
 

February

WAYS OF WORKING

PPSC/Nexus runs RPC:
Share charters GSC Strategy
Add Carsten

Ways of Working for RPC:
Move forward with decision making
Give vote to RPC teammate if absent for meeting
Markus 100% focus on RPC for next 9 months
Inform RPC about e-sourcing Ariba and delay

PRIORITIZATION OF STRATEGIC INITIATIVES

Contracting:
Continue per plan

SRM:
Finalize for Pharma and roll out (aligned with DIA)
Deploy SPEED in DIA

Sustainability and Compliance:
Stop as S1: Day job

People:
Continue as planned

Metrics:
New finance head to review
X propose to RPC next steps

Procure to Pay:
Continue as planned with Jessica

2016

 

March 

WAYS OF WORKING

PPSC/Nexus runs RPC:
Agree on clear R and R between RPC and PPSC
Sharpen focus of PPSC membership

Lack of Prioritization: 
Hire PM 

Ways of Working for RPC:
Taking active ownership of quality of agenda
Commit to one 4-hour meeting per month via Telepresence

PRIORITIZATION OF STRATEGIC INITIATIVES

SRM:
Pilot in 2016 consulting and thermo for joint SRM


May 

WAYS OF WORKING

PPSC/Nexus runs RPC:
Total clarity on GBS strategy impact on Procurement


June

WAYS OF WORKING

Lack of Prioritization: 
Build portfolio during F2F in Indy


July

PRIORITIZATION OF STRATEGIC INITIATIVES

Category Management:
Pause RIR 


October 

WAYS OF WORKING

Lack of Prioritization:
Operating Model and implementation plan  


December

WAYS OF WORKING

Lack of Prioritization:
Project inventory to drive value:
-Planning
-Implementation
-Realization   
Elevate TOM on Charter


January

PRIORITIZATION OF STRATEGIC INITIATIVES

Business Partnering:
Pause for 2016 decide early 2017 based on TOM

Sourcing:
Stop for 2016 (on hold) decide early 2017

2017


A Moment of One
Procurement Inspiration

From DJ Dirk

RPC Blitz Outputs


RPC Blitz Outputs



Every Output Is an Input


Each Think Wrong drill produces useful output. Documentation of our work provides a rich collection of ideas and insights to mine as we move forward. 

 

 


The Bold Path

 

We identified six dimensions of transformation for One Procurement.  

We used “Deflection Point”—a Be Bold drill—to imagine the future if nothing in Procurement changed and to explore the kind of transformation we might be able to lead as One Procurement.

 

Strategy
 


Support business priorities

Drive best business decisions

Provide a competitive advantage

Drive revolution rather than evolution

Transform Roche


Platform
 


Make it easier to work with Procurement

Enable Procurement to be strategic partners to the business


People
 


Attract top talent—from business functions and beyond

Drive high morale

Make our people proud

 


Ways of Working


Make it easier to work with Procurement

Increase speed and agility

Free up funds for investments



Value
Delivery


Make value clear

Extract full potential and benefits for Roche

Demonstrate value of innovating Procurement to Business Development

Drive demand for our services

Drive more value for patients


Reputation
 


Build trust

Elevate the status and impact of Procurement

 


Aim High

We used “Moonshot”—another Be Bold drill—to envision initiatives with the potential to benefit millions of people. We started to shape a shared vision of what impact means to us, what we aspire to accomplish, and why we believe it is possible.

 

 

 

We allowed ourselves to imagine the full breadth of impact we might be able to lead as One Procurement. 

 

Team 1

Innovate state-of- the-art tools.

Populate resources into cross-functional teams—splitting Procurement into Business Sectors rather than a Group Function.


Team 2

Integrate business development— influencing and shaping business strategies. 

 


Team 3

Faster to market by 50%.

Our suppliers impact patients, shape end-to-end drug discovery, and reduce cycle time by 50%.

 


IAWTST (In A Way That So That)

We explored the mindset, values, and approach we wanted to exemplify through One Procurement.

We used “So That...”—a Be Bold drill—to explore how we wanted to go about doing the business of One Procurement and the kind of results that we might produce.

 

Team 1

In a way that is a great customer experience so that people love to work with One Procurement and Roche.

In a way that is quick and agile so that Roche can utilize the latest industry offerings.

In a way that quickly meets business needs 
so that we offer a competitive advantage.


Team 2

In a way that moves from savings and process to talking about business and business strategy so that people see the value of involving Procurement in business development—and so that Procurement is seen as a business function.

In a way that attracts talent from business functions so that the business can be influenced more effectively—and to make it easier to work with Procurement.


Team 3

In a way that engages our suppliers
so that we extract their full potential and benefits for Roche.

In a way that innovates so that we go for revolution rather than evolution.

In a way that best uses our market insights and data so that we get the best business decisions.

 


Build a Legacy

We escaped the constraints of strategic planning cycles to imagine the difference One Procurement might make for society and future generations.

We used “Eulogy”—a Be Bold drill—to explore what our legacy might be, the obstacles we might overcome, and what people might miss most if we were gone. This drill helped us aim even higher for what we might accomplish together—and produced new and compelling language to describe our value and why One Procurement might matter.

 

Team 1

We can be the catalyst for progressive change.

We can boldly go where no one else in procurement has gone.

We can be known for our energy and innovative approach.


Team 2

We can help save people’s lives with disruptive, innovative technologies that enable speed to market.

We can cause Procurement to be seen as much more than savings.

We can change mindsets in Procurement and across the Business.

 


Team 3

We can focus the role that Pharma plays in drug development.

We can create new, distinct markets that support Pharma.

We can be relentless advocates to focus on what makes a difference for patients.

We can make our shareholders’ investments in us meaningful and sustainable.


From Loathe to Love

We explored how we might transform the things we don’t like about the RPC into things we could all love. 

We used “Loathe to Love”—a Let Go drill—to generate ideas for how we might make One Procurement even more compelling. On Day 2 we ran a second round of “Love to Loathe,” focused on how we might become even more effective as the RPC.

 

Feels like Nexus runs RPC.

Invite Carsten to serve as an interface between Nexus and the RPC.

Share charters—GSC Strategy.

Gain clarity on GBS Strategy and understand its impact on Procurement.

Develop Joint Operating Model with Carsten.


Lack of prioritization.

Elevate TOM on the RPC charter.

Ruthlessly prioritize our projects.

Identify and support only our Top 5 projects. Everything else stops.

Stop 50% of our projects.

Agree on clear roles and responsibilities between RPC and PPSC.

Sharpen focus of PPSC membership.


Systems, tools, and IT roadmap changes.

Tensions between divisions.

Too much divisional viewpoint.

Too busy for strategic change.

Operating model + project inventory to guide planning, implementation, and realization, as well as to drive value creation.

 

 


RPC Ways of Working.

RPC chairman focused exclusively on RPC for 9 months.

Face-to-face meeting at Leadership Conference, 4 April 2016.

RPC commits to one 4-hour meeting per month via Telepresence.

Move forward with decision making—if unable to attend meeting, give RPC colleague your vote.

Take active ownership of quality of RPC agenda.

 


Matters Most

We used “Matters Most”—a Move Fast drill—to create an inventory of everyone who matters to the success of One Procurement. From that inventory we identified the three most important constituents. 

 

 

We considered who might be most important to our success—and who our success might matter to most.


Our
Employees



Our Business Partners



Our
Suppliers


 


Make It Real (Round #I & #II)

We shifted from talking to drawing—to build a deeper understanding of emerging solutions and models.

We used “Draw It”—a Make Stuff drill—first to explore how One Procurement might show up for employees, business partners, and suppliers at the moments that matter most to them.

Then we used “Draw It” to build on the Target Operating Model (TOM) already in development by the GGPLT.

 

Round 1: Moments That Matter

 

Round 2: Target Operating Model

 

RPC Blitz Resources


RPC Blitz Resources