14 Dec 2022
In our previous blog we revealed how Laminex Australia boosted its performance as a result of its business improvement journey with Oliver Wight. Implementing Integrated Business Planning helped the manufacturer of laminates and other surfaces dramatically improve its forecasting capability, working from a single set of numbers rather than the multiple sets it had previously. However, Laminex also had other challenges to overcome, including discontent and poor practices among its people. Staff felt overworked and frustrated with counterproductive behaviours driven by functions operating in silos, but by working with Oliver Wight, Laminex managed to empower its people. This is what they have to say.
The problem
When Oliver Wight assessed the Laminex operation, it discovered that communication and collaboration across functions was missing with significant stress felt throughout the entire company. CFO, Joe Nicolazzo reflects on how it was at the time, “I saw little fiefdoms – sales, demand planning and so on. They [staff] never talked to each other. They had a sales and operations process, but it wasn’t brought forward into the senior leadership team. People were acting on their own.”
IBP journey
Following the implementation of Integrated Business Planning, staff behaviour took a positive turn despite initial challenges. Most people in the organisation had never worked in an IBP environment before, so appointing a full-time IBP leader proved fundamental in getting staff to accept the new ways of working and building their trust in the process. Nicolazzo explains “IBP is a pragmatic tool, where you can quickly see the benefits. Breaking bad habits was important in the early stages. Now, nobody goes off independently to try and solve problems.”
IBP benefits
It took approximately six months to gain the trust of its people; the benefits became evident soon afterwards. A key outcome was the empowerment of people within the organization to make decisions and solve problems at all levels. GM Supply Chain, Graham Crosswell, states, “IBP has provided the opportunity for people to lift in capability. We have people making decisions and bringing solutions, then executing them. This is great for the business and is driving better outcomes.”
All members of the leadership team agree that people were fundamental to the success of its IBP implementation, resulting unprecedented levels of communication, collaboration and integration right across the business. Nicolazzo enthuses: “These days the collaboration is at a level I haven’t seen in any other organization. We now have a process to run our business that includes everyone. Our ability to react and process a new problem has gone from zero to one hundred. People have control and influence and can drive decision-making whereas previously, they were just doing what they were told. It’s better for the organization and it’s better for the individuals in terms of job satisfaction.”
Graham Andrew, GM of Operations, explains how this integration and cohesion goes directly to the bottom line: “We are far better connected across the various parts of the company, not just supply with demand, but also with finance. It has enabled us to plan better around the many crises we have had to deal with. We would not be in our current EBIT position if we did not have IBP.”
To find out more about the benefits of IBP read the Laminex story here.
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