Modificaciones Itm

3
Light-Level Application

In this chapter you will learn: • How to apply the strategy locator to the light version of a customer-centric strategy. • How to use customer teams as the structural form for the light strategy. • How to implement the total organization design by using management processes, measures, rewards, and people practices to complement the strategy and structure. • That theleadership is the key ingredient for putting all of the pieces together.

The range of options for implementing degree of customer-centricity is less a definitive choice from three sizes and more a determined point on a continuum of complexity. For expediency, the options seem to be divided here into the static checkpoints of low, medium, and high, but these should rather be considered thedelineations of chunks of the continuum; a company requiring low-level application will place itself somewhere along the first chunk, a mediumlevel application will fall within the middle chunk, and a high-level application will be situated in the high-end chunk.

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DESIGNING THE CUSTOMER-CENTRIC ORGANIZATION

Customer Lite
This chapter focuses on a company that has incorporated a “lite”version of the customer relationship and the customer-centric organization (the first chunk). I have used Nestlé as an example of a product-centric company whose customer-focused organization was an informal one (which more recently became Internet based). Degussa’s Catalytic Converter division has formulated a stronger customer relationship strategy and has implemented it using customer teams.Degussa has implemented a more customer-centric strategy, though it measures only a 3 on the strategy locator score. This customer strategy has evolved because of its extensive interaction with its auto OEM customer in customizing unique products for them. Also, Degussa is dealing with a few strong auto OEMs that know how to use buying power. (Nestlé watches global retailers like WalMart andCarrefour carefully but sells into a much less concentrated market.) And finally Degussa participates in the supply of an integrated auto exhaust system solution while providing one of the components. It actively participates in the design of the exhaust systems by partnering with the engine group at the auto OEM, the electronic engine controls supplier (such as Bosch), and the assembler of the tailpipe,muffler, and catalytic converter system. In terms of the framework being developed here, Degussa is shown in Figure 3.1. The company is depicted as low on the solutions strategy locator. Its low position results from measuring 1 on scale and scope and 2 on integration. The 2 results from its supply chain partnership integration. Degussa uses formal teams as well as informal contacts to become morecustomer-centric than Nestlé.

Degussa Automotive Catalysts Division
Degussa AG (which was recently acquired by the OM Group) places a specialized chemical formulation including platinum and palladium catalysts on substrate pieces, which are inserted into automotive exhaust systems by the tier I assembler. The catalyst pro-

LIGHT-LEVEL APPLICATION

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Figure 3.1 Low Solutions ComplexityUses Formal Teams

Note: The right figure shows the lateral forms that Degussa used.

motes a chemical reaction to reduce harmful emissions from tailpipe exhaust. It is a tier II supplier but a tier I developer to the automotive OEMs like BMW and Volkswagen. The development role is the driver of organizing around the OEM automotive customer. The division has revenues of 600 million euros, halfof which is the catalysts for the OEMs. The rest is supplying precious metals. It started in the auto catalysts business in 1974 and by 1980 had a 4 percent global market share. Today it has a 20 percent share, which is increasing because of its technology. Degussa has factories in Germany, the United States (joint venture, JV), Canada, Mexico, Korea (JV), Japan (JV), South Africa (JV), Brazil...