Strategic Management and Lego Service Center

Topics: Strategic management, Management, Strategy Pages: 17 (1474 words) Published: November 9, 2013
Facility Mangement
Value add
Leif Møllebjerg
LEGO Group

Global FM Footprint ………

Page 2

… requires Flexible, Scalable quality services at ”the right cost”

Page 3

FM as part of LEGO Service Center

LEGO Service Center Business Plan
Most important LSC program initiatives
Balanced scorecard

Strategic focus areas
Charge back model

Continuous improvement

Value creation
LEGO Service Center
Program agenda


Innovation program
Aligned customer expectations
Multi-functional service desk



Organizational structure
Clear interfaces between LSC
and Corporate Functions
Gain acceptance externally of
the multi-functional LSC setup
Build competencies and
employee commitment
Page 5


Strategic Direction


Page 6

Why now?

The sense of urgency is about being proactive – the ”why” is about ”Mending the roof while the sun is shining”
Why? To support Shared Vision because…

We need the right focus at all functions in Corporate Center. This is not only for optimizing the way we deliver service but also to stress the importance of having corporate functions that really drive strategic business development

We need also to have management focus on all the employees who make the wheels turn – which can be a challenge when we also have to focus on e.g. strategic projects

We want to change the perception of our operational departments from being seen as only creating cost to be seen as an asset that deliver highly professional services that supports the business in a way that can not be bought anywhere

We need to be able to support the divisions in a decentralized setup in a standardized efficient way by having common customer interfaces and SLAs

We need to be able to provide services across the existing functional silos. If not we will not be able to achieve critical mass when the number of employees in the company is being reduced during the coming years

We need to be able to document that we are providing the services to be business in the most cost efficient way compared with alternatives in the market Page 7

Mission, Vision and Key Objective…
Why are we here?
Our services enable our customers to improve and to focus on their core processes, by giving them the possibility to choose the right balance between cost and customization that fit their and the LEGO Group goals

What do we aim at?
To be the right choice for our customers and employees by providing more value than our competitors

What will we deliver?
Key Objective:
To deliver minimum 5% value add every year

Page 8

Core messages - Strategic employee mindsetting

1. Customer focus
We have to keep a strong consistent focus on our customers in order to be seen as a beneficial partner that allows the customers to entirely focus on and improve their core businesses.
2. Continuous improvement
In order to stay competitive we must strive for continuous improvement. By challenging ourselves in everything we do we will seek new and better ways to fulfill the customer’s and the LEGO Group’s goals

3. Performance management
We need to have our ear to the ground. Only by understanding ourselves and the way we do business we will succeed. Using Balanced Scorecard as a tool we will gain more knowledge about our operation which will help us prioritizing our initiatives and developing our competencies.

Page 9


Strategic Direction


Page 10

Value Add Equation

We provide services with the
right agreed and perceived

We ensure the flexibility to provide new
services or eliminate existing services

Volume *
Value Add

Quality *


We ensure an ability to scale up
and down within the known

We constantly take a total
company cost perspective of
the services we deliver

Page 11...
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