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Sustainable Growth - Global Readiness event - Is it possible to change interactions between groups - 12.2012
The document describes Applied Materials' Global Culture Program, which aimed to transition the company from a US-centric to a truly global organization. Key initiatives included defining global job families, implementing job rotation, and building cross-cultural engagement. Surveys found Asia and EMEA interacted much less than 10% before the program. After, all regions shared the network "core" and influenced each other more equally. The program showed cultural change can be managed as a project and simple mechanisms like sharing workloads can strongly impact interactions between groups.
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Sustainable Growth - Global Readiness event - Is it possible to change interactions between groups - 12.2012
- 1. Global Readiness Event Is it possible to change interactions between groups ? Dec 6, 2012
- 2. Applied Materials -G.I.S. Global Culture Program – Case Study
- 3. Agenda ∗ How did it all start? ∗ Applied Materials, GIS, Global Culture Program ∗ The challenge and the approach ∗ The mission and main initiatives ∗ Program Measurements ∗ Lessons learned 3
- 4. How did itall start? “…In addition, Applied is implementing a comprehensive program to better align its global organizations and processes, including initiatives to enhance the Asia supply chain and improve back office and information technology infrastructure for more efficient transaction processing.” Extracted out of Applied Materials annual report 4
- 5. Applied Materials ata glance World leader in Nano manufacturing technology™ solutions 1970+ 1990+ 2010+ Computing Communications Energy and Environment Public Traded Nasdaq: AMAT Manufacturing: China, Germany, Israel, Italy, Singapore, Switzerland, Market Cap: $16.5 billion Taiwan, United States Founded: November 10, 1967 Headquarters: Santa Clara, California Patents: ~8,200 issued 5
- 6. Applied Materials Worldwide 104 Worldwide Locations North America China Taiwan Israel India South East Europe Korea Asia UAE Japan 6
- 7. The Challenge andApproach ∗ Background ∗ The Business is moving to Asia ∗ Deep changes in organizational structure requiring matrix mindset ∗ Need for standardization, cost reduction and elimination of local solutions ∗ GIS needs a new global operating module, from US centric to a real global organization, close to the customer 7
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- 9. Network Analysis Survey (2010) Main findings: ∗ core-periphery network ∗ 80% of US of interactions are internal ∗ Asia and EMEA interact 40% - 60% with US ∗ Interaction between Asia and EMEA is less then 10% 9
- 10. Global Culture CoreTeam China Japan Singapore India Korea Ireland Austria Israel USA France…. 10
- 11. Global Culture Program- Mission The 'Global Culture' program mission is to support transition to a new global operating mode, from US centric to a truly global organization operating effectively in collaboration and trust while strengthening global leadership and presence in Asia. 11
- 12. Global Culture Program- Mission The program will create an environment that: ∗ Increases employees’ engagement ∗ Reduces cultural barriers and uses cultural differences as an advantage ∗ Builds Global GIS leadership ∗ Leverages skills across all locations ∗ Operates globally (teamwork engagement, forums and trust) to increase effectiveness ∗ Builds communication around global time-zones 12
- 13. Main Initiatives Globalization Communication & effectiveness Job Families& Job Global Leadership Roles & Career Rotation Responsibilities Paths Profile Global Flexible Team Global Idea Learning & Hours Building Forum Mentoring Events Global Team leads Global Projects, Financial visibility, Business Partners, 13 And more…
- 14. Initiative Example: LeadershipProfile CUSTOMER FOCUS • Strives to better understand and partner with our customers • Ability to put the needs of the team and Applied Materials above yourself ENABLE OTHERS TO ACT • Strengthen others through personal development • Enlists others in a common vision – goal – scope or work • Recognizes contributions • Builds a spirit of community • Foster collaboration by building trust • Makes others successful 14
- 15. Initiative Example: Leadership Profile COURAGE TO LEAD IN A COMPLEX ENVIRONMENT • Sets the example through words and actions • Proactive, takes the initiative and drives opportunities to closure • Has the confidence to work independently CULTURAL AWARENESS & with minimal direction ACCEPTANCE • Possesses the courage to take risks and • Knowledgeable and curious drive change about global cultures • Addresses conflicts early and positively • Adjusts style to cultural manages them differences • Strives to engage and involve the global team – open boarders 15
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- 17. GIS Global Culture- key milestones ∗ June 2010 Network Survey ∗ July 2010 Formation and Workshop #1 (SCLA) ∗ October 2010 Workshop #2 (Singapore) ∗ January 2011 Workshop #3 (SCLA) ∗ February 2011 Baseline Survey ∗ June 2011 Mini workshops and wrap up plan ∗ February 2012 End of Program 17
- 18. Baseline Survey –sample findings Job families A. My area of responsibility and job description are X % agree or strongly agree well defined B. I understand my career path options X % not sure, disagree or strongly disagree R&R C. I understand how my objectives contribute to the X % agree or strongly agree success of GIS •Ratings consistently high across all regions D. Roles and responsibilities are clearly X % not sure, disagree or strongly disagree communicated and aligned across GIS Global team lead global projects U. I am able to influence key decisions that fall X % agree or strongly agree within my global area of responsibility W. Leadership opportunities are available in • Global leadership is a key improvement the regions opportunity 18
- 19. Baseline Survey -Main findings Flexible hours H. My manager supports working flexible hours X % agree or strongly agree I. On average, how many hours do you spend X % with >5 hrs. each week in meetings outside of the 7:00 am to 6:00 pm time frame in your time zone K. How many days a week on average do you • X % almost full time at home work from home ? • X % work ≤1 day/wk at home • Asia region works fewer days from home O. How often do you have 1/1 meetings with • X % have 1/1 meetings biweekly or more often your manager? • X % have 1/1 meetgs monthly or less often P. How often do you meet with your manager in • X % meet in person at least quarterly person ? • Europe and Asia regions meet their manager in person less then twice a year • Executives met with their managers most often Job mobility and rotation Y. I am interested in job rotation as an X % agree or strongly agree opportunity for advancing my career or gaining professional experience / personal development 19
- 20. KPI’s for GlobalCulture Project Objective Current Value Target X % complete Overall program progress to plan 100% to plan on schedule for May 11 … Overall Program Organization assessment survey X (baseline) 10% improvement (3.82) Workflow: Asia- X % | EMEA- X % 10% improvement of | US- X% Network Analysis Survey workflow outside of region Advise: Asia- X% | EMEA- X% | and Advise seeking US- X% X % defined; coordination with Corp Compensation required Job Families Job families with R&R defined prior to finalization and X % by end of fiscal year communication - on track for 100% by EOFY Pilot completed by Oct 31 Creation and successful completion of pilot TBD - Q3/Q4 2011. Job Mobility Documented and approved & Rotation % of identified and approved rotations in Wasn’t measured yet – Target % and date to be process by x date. TBD - Q3/Q4 defined (based on pilot) % of employees that meet 2 or more times / year in person with manager (incl group & X% X % with survey rating ≥ 3 Flexible Hours 1/1) % of employees that meet once / year in X% X % with survey rating ≥ 2 person with manager (incl group & 1/1) SLT review in April. Published in Q2. Roles & On track. Define and rollout process for R&R Rollout update process R&R defined, publication Responsibilities definition and updates. Progress to plan. during Q3. (Monthly) planned within 2 weeks. Published R&R updated quarterly 20
- 21. Results ● Network Compositionmoved in a positive direction for each region and each question relative to 2010 – in many cases these changes exceed X % ● AMER, ASIA, and EMEA now share the “core” of the network – significant change from the AMER-dominated network of 2010 ● ASIA and EMEA are at least as influential (if not more so) than AMER in terms of their connectedness to other influential individuals ● AMER has been relieved of the burden of serving as a bridge to other subsections of the network – though this work still continues in ASIA and EMEA.
- 22. The new normsand values We strive to an environment of strong and effective global matrix organization, reduce culture barriers, build global leadership and increase employee engagement o New Regional and Country Business Partners roles to enable Close to the customer and matrix management of remote/distant employees o Defined standard, Global and simple Job families with clear Career path o Structured Job rotation and mobility process to support organizational flexibility and leadership skills development per environmental needs o Global leadership development through empowerment, defined values, mentoring and matrix/remote training o Built cross culture engagement and trust through global team building activities o Developed “sharing the pain” and “flexible hours” practices for remote/virtual team work o New working methods and processes to enhance global Communication, Ideas Sharing and Financial visibility
- 23. Insights from thiscase ∗ Even Global Organizations can go through “regressive periods” due to different factors (structural changes, mergers, etc.) ∗ Changing interactions between groups is possible and doable ∗ Interactions between groups can be measured and changed. Network Analysis is a great tool to map and understand interactions ∗ Managing cultural change as a project (tasks, milestones, KPIs, etc.) is critical.
- 24. Insights from thiscase ∗ Soft elements like culture and cultural gaps affect performance dramatically ∗ Teamwork and people’s excitement are critical for success ∗ Sometimes simple mechanisms like “sharing the pain” can have strong impact ∗ Different areas in one company can have different global maturity levels
- 25. What did wecontribute ? ∗ Project Concept Definition ∗ Workshop Facilitation ∗ Network Analysis Survey – construction and analysis ∗ Survey & KPIs construction and measurement ∗ Task Team Facilitation & Input ∗ Project Management 25
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