Category Strategy Deployment - Summit

© AberdeenGroup 2012 

Strategy Deployment - 

Getting the Most Execution 

from A3 Category 

Management Techniques 

John M. Klein 

Global Vice-President, Procurement 

Avery Dennison 

November 14, 2012

Avery Dennison Overview 

> World’s Largest Producer of Pressure Sensitive Labels and Retail Tags 

> Founded in 1935 

> $6.8 billion sales in 2011 

> 2011 Fortune 500 ® ranking: 346 (NYSE: “AVY”) 

> Global operations in 60 countries with industry leading businesses 

> Based in Pasadena, California, 

with more than 30,000 employees worldwide 

> Our labels are all over your home. You touch Avery Dennison every day. 

2006 


Avery Dennison Confidential 

- 2 -

Avery Dennison Materials Procurement 

> Centralized Global Organization run from Cleveland, OH 

> 100 Sourcing Professionals located around world; Buyers part of Ops/Supply Chain 

> 3 primary organizations: Global Commodities; Regional Procurement; Sourcing Ops. 

> $4B of spend: $3B of Direct Materials and $1B of Indirect Materials 

> Direct Materials are primarily specialty materials: papers, films, resins and chemicals 

> Indirect Materials include logistics, MRO, utilities, HR, travel, professional services 

> Lots of VERY interested stakeholders, with infinite wisdom and advise 

2006 



- 3 -

The Challenge: Effective Global Strategy Deployment 

Complicated, global business with conflicting regional opportunities 

and approaches to deliver results; myriad of views of procurement 

Mix of “global” vendors with strong regional players and relations 

Continual need to find lower cost materials that are the best quality 

OK… so we all have this problem… But what can one team do 

 

 

 

 

Customize company’s OGSM methodology and A3 strategy deployment to 

ensure execution, alignment and transparency in major spend categories 

Have monthly strategy A3 reviews to track progress for stakeholders 

Utilize Managing for Weekly Improvement (MWI) to accelerate goals 

Ensure strategy A3s tie into supplier roadmaps linked to the annual 

strategic and operating plans for the company 



- 4 -

Before we get started….. some definitions 

OGSM 

 

 

 

 

Objectives 

Goals 

Strategies 

Measures 

Basically the “True 

North” of the function 

Gives organization a 

macro view of function 

A3 

Refers to the Size of 

the Paper (11” x 17”) 

“Tells a Story” gives 

the reviewer a quick 

understanding of your 

category strategy 

Designed for clarity, 

transparency and 

alignment with all 



- 5 -

Global Procurement OGSM Summary 

GOAL: Develop robust supplier relationships to improve supplier performance, create innovation 

and growth opportunities and provide a material cost advantage 

KEY MEASURES STRATEGIES (Pillars on All A3s) KEY OBJECTIVES 

Inflation 

Management 

Metrics 

Cost Out Metrics 

Indirect Spend as 

% of Sales 

Average Days to 

Pay 

Spend Under 

Management 

Supplier Led 

Innovations 

PEOPLE 

– Develop high performing, cross functional and divisional teams that 

foster respect by attracting talent, developing capabilities and 

delivering results 

MATERIALS COMPETITIVENESS 

– Drive value beyond market conditions while mitigating business 

risk by leveraging our external spend and optimizing our supply 

options 

BUSINESS DECISION SUPPORT 

– Provide timely and relevant procurement information by improving 

spend visibility, forecast accuracy, and analytics across divisions 

and regions 

SUPPLIER COLLABORATION 

– Develop supplier partners that lead cost out and offer novel 

solutions by ensuring we are the preferred customer of choice 

SOURCING FOR GROWTH and INNOVATION 

– Effectively and efficiently identify new suppliers and acquire new 

materials or solutions by improving our strategic sourcing 

capabilities 

XXXXXX 

XXXXXX 

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XXXXX 

XXXXX 

XXXXX 

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XXXXX 

XXXXX 

XXXXX 

XXXXX 

XXXXX 

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The Problem: Strategic Proliferation 

At Avery, we became engulfed in too many strategies and 

objectives across various functions and divisions causing 

competing priorities and conflicts 

If you don’t have and OGSM objective, you must not be 

important to the company, right! 

 

 

AD had hired a consultancy to help cascade OGSM via A3 problem 

solving from the Top down to each division… down to each group… down 

to each function.. down to each department…. CLARITY! 

After 2 years of deployment, everyone felt the need to have an OGSM and 

A3s. They became a badge of honor, corporate vindication 

 

OGSM’s/A3 proliferated wildly and “Just Do It” projects clouded strategic fundamentals 



- 7 -


- 8 - 

Houston… We have a problem! 

OBJECTIVE: Worldwide leader in Value-Added Printable Media 

Goals Strategies Measures 2006 Tactics and Points of Focus 

1. Invest and Grow Superior Branded PMG Net Sales vs. prior year* 1.1 Deliver an exceptional consumer experience every time 

Printable Media Solutions (a) Improve product quality via QFD/CTQs and updated testing protocols product requirements. (Patel) 

Net Sales Growth PMG Net Income vs. prior year* (b) Upgrade print enablement solutions and Avery.com. (Phillips) 

(% prior year) Sponsor - Thompson (c) Provide superior consumer service through CSC and CRM practice. (Bauman) 

Net Promoter Score 

1.2 Develop and launch key product renovations: White Mailing Easy Peel (Chapman), Next Gen. Index Maker (Raskin), 

Dual Sided Clean Edge (Gleiter) and Durable Fabric Transfer (Glenn) 

1.3 Increase investment in consumer awareness via integrated events and drive greater spending effectiveness through test and proven 

activities. (Isaac) 

Global Business Development 

1.4 Define and develop three global growth platforms and a minimum of six ventures/experiments utilizing global OP growth process and 

New PMG Sales of $7MM tools. (Carter) 

Net income growth 2. Manage other categories for BOPWI ROTC% (w/o GW) >=10.5% Marketing 

(% to prior year) sustainable returns 2.1 Launch Binder specific programs in 2007 that are cost neutral, drive trade-up and result in a year over year revenue increase of 8% in 

BOPWI EBIT 6.9% vs 6.1 % PY Durable/Heavy Duty and variable margin expansion of 3.5 pts. To 29.5%. (Raskin) 

Sponsor - Moffa 

2.2 Execute 2007 price increase ($6.7MM). Evaluate and decide by 6/07 on a price increase for 2008. (Ladwig) 

2.3 Stem the decline in Writing Instrument revenues by driving a limited number of product improvements and sales promotions during BTS in 

mass market and dollar store accounts. (Raskin) 

Supply Chain 

2.4 Leverage Division wide SKU management process to drive network inventory and space 

reductions as well as enable increased Plan Direct shipments. (Briskie) 

2.5 Deliver ELS projects targeted to save $9MM. (Smigelski) 

2.6 Transition to an outsourcing model for O&P sheet protector products by the end of 2007. (Burns) 

2.7 Develop internal capabilities for servicing a direct import SC model, initial test and prove project will be an economy weight sheet protector SKU at 

WM. (Amaya) 

EVA w/o GW Growth 3. Deliver exceptional value that Branded PMG POS Growth 3.1 Drive growth on branded printable media categories across top seven OPNA customers. (Ladwig) 

(% prior year) our customers reward 

Branded PMG Shipment Growth 

3.2 Provide great service, as measured by top seven OPNA customer's scorecards. (North) 

Sponsor - Ladwig 

Customer Scorecard results 

3.3 Deliver 3 major category management projects that drive profitable growth for OPNA. (Bernstein) 

Binder EBIT % vs PY 

3.4 Drive more profitable growth of binders in top seven OPNA customers. (Ladwig) 

4. Reduce waste relentlessly Reduce COGS as % Net Sales 4.1 Develop plant-direct shipment capability in all regions to pull out costs. (Briskie) 

from 62.1% to 61.1% 

Sponsor -Temple 

4.2 Operationalize a SKU segmentation strategy across all businesses. (Hansen) 

4.3 Implement the Glovia supply and plant planning initiative with excellence. (Kenney) 

Deliver One List Savings of 

4.4 Accelerate one-list opportunities and create a robust pipeline of future savings opportunities. (Smigelski) 

$20.4MM 

5. Build a highly skilled, motivated, % HP/SP-45% 5.1 Increase leadership accountability on talen and succession via metrics and consisten follow-up. (Alders) 

and effective organization 

Roles with RN Successor % - 46% 

5.2 Continue to strengthen internal talent & succession via Waves II & III of Foundations of Leadership, improved execution of GPS development 

Sponsor - Alders plans, and other development initiatives. (Contreras) 

Employee Morale (%Favorable)-65% 

5.3 Continue to leverage ELS philosophy to drive project prioritization, project management, and other enterprise-wide initiatives. (Alders) 

5.4 Continue to deliver worldclass safety results. (Loder) 

RIR = .9 

5.5 Communication and action planning based on results of 2006 Employee Opinion Survey. (Williams) 

OFFICE PRODUCTS NORTH AMERICA OGSM 

Dept Owner Dept Manager Employees Project Owner 

Department OGSM 

Alignment to GPS at All Levels of the Organization 

1 – Save Company $ 2 – Increase Terms 3 – Product Value 4 – Increase Efficiency 5 – Org Development 

PLAN 

DO 

CHECK 

ADJUST 

Grasp the 

Condition 

Project A3 Report Format. Mailing and Filing Block Out Labels 

Project No: 

Overall Lead: 

Overall Status 

Last Update: 

Project/Initiative Key Objectives 

Spending: Budget Actual Latest Estimate 

Stat* 

stock materials. Launch white opaque laser and ink jet large size 

Expense- PD 

permanent adhesive mailing label skus, without easy peel feature 

Capital 

Phase 2: Qualify & launch white opaque perm file folder label sku, 

Other - Consumer Research 

using S-490 adhesive and mailing (10 up and lger) using S490 Business Impact Annual This Year Next Year Stat* 

Phase 3: Determine whether or not the materials and/or 

Net Sales 

processes used for the first two phases can be changed to reduce Net Var Margin % 

costs, without sacrificing performance and appearance 

Net Income 

attributes. If so, the new reduced cost LSM(s) will be 

qualified. 

Other 

*Status: 1= On Target, 2 =In Jeopardy, 3= Major Concerns or Miss 

Major Milestones / Schedule October November December 

Deliverable Status* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 

Qual 2 Trial CBC Product 1 1 3 

NALT Update, Go/No Go to Proceed 3 

Gate 2 Review - Feasiblity to Qualification 1 3 

File Provisional Patent 3 

IOUT Results, Validate CBC Option 3 

Confirmation Trial Phase 1 

Complete New Packaging 1 3 

Gate 3 Review, Commercialization 1 


1 -Original / 2 - Current / 3 - Actual 

Top Deliverables /Tasks Completed last month (11/7/07) 

Comments 

Mailing IOUT completed on CBC product and report received 

CBC product met all decision criteria 

Printer performance improvement tests successful in reducing defect rate 

Stepped Down Anvil die demonstrates no sig. difference vs. control, build into spec 

Production quantity qualification trial completed on CBC product 

Experienced moisture variation leading to lay flat issues, more testing required 

In depth process review at CBC 

Reason for cross web moisture variation still unknown, reviewing data on ovens and 

remoisturizing process, more learning from product run at Fort Wayne & testing at TJ 

Initial ADPP Formulation run on Pilot Coater, samples approved for 

2 pigmented adhesive sample and 1 pigmented adhesive sample chosen for optimization - pilot 

further optimization 

coater 11/2, variable will be coat wt to improve opacity to match CBC 

ADPP 2 Pigmented dual layer formulation validated on pilot coater 

Next pilot coater run to determine boundaries on coat wt for dual pigmented layer 

11/2, reached targeted opacity, 99.9% opacity 

Upcoming Deliverables / Tasks - November 

Responsible 

Accountable 

Item Due Rev Due (The Doer) (Who's Shot) Consult Inform 

Cost Update on ADPP M. Pickner A. Conti S. Butler Team 

CBC Process Technical Assess K. Kinney S. Butler D. Loree, H. Humes 

ADPP Pilot Coater Optimization A. Conti S. Butler B. McCarthy, D. Loree 

Gate 2 Approval U. Tran S. Butler 

Launch Assessment and timing 

S. Butler 

Current Issues and Risks Responsible Due Rev Due Comments / Resolution Need Help 

Off Press Lay Flat Issues - Moisture variation with CBC product 

B. McCarthy Indepth process review at CBC 

in both down web and cross with CBC Qual Further learning at Fort Wayne by 11/9 

product was discovered in Oct, Qual 1/Feas 4 

Key issue is to determine sustainability 

Potential risk to current timeline and launch of process at CBC. Can CBC Steering Com 

consistently control the process 

Involved. 

and deliver quality product with minimal scrap 

Minimize Prebuilts/Maximize BO shelf stock U. Tran Wkly Supply Chain Meetings 

No low cost solution from ADPP A. Conti June, 2008 Continue to optimize form/ct wt Steering Com 

Need to understand capital expenseInvolved 

and feasibility of 2 pig. process at FW 

Frequency Date Time 

Core Team and Attendance (Beg. 8/29/07) Meeting Schedule Weekly Wednesday 10:00 am PDT 

Function Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10 Wk11 Wk12 Wk13 Wk14 Wk15 Wk16 Wk17 Wk18 

Overall Lead S. Butler 1 1 1 1 2 1 1 1 1 3 1 

Marketing U. Tran 1 1 1 1 2 1 3 1 1 1 1 

Supply Chain D. Loree 1 1 1 1 1 1 1 2 1 1 

Con Insights S. Sheldon 2 1 2 1 1 1 3 3 1 1 1 

NPD B. McCarthy 1 1 1 1 3 1 1 1 3 1 1 

Meridian Site 

Chicopee Site B. Beaudet 1 1 1 1 1 2 1 1 2 1 1 

Tijuana Site G. Escalante 2 1 2 1 1 2 1 2 2 1 1 

Meridian Site C. Harris 1 2 1 1 1 1 1 1 1 1 1 

Juarez Site M. Lopez 2 1 1 1 2 1 1 1 1 2 2 

Color Code 1 - Green, attended 2- Red, absent 3 or blank to indicate vacation 

Steering Committee, Weekly Wed, 11:00-11:30: Frank Smigelski, Jason Santamaria, Jeff Brown, Alan Maule, Ron Briskie, Melissa Chapman 

Extended Team: FRNA: Karen Kinney, Holly Humes, Andy Kukoly, Andy Conti ADPP: Ken Wolfe, Customer Mkt: Annette Gabele, Nancy Wilbur 

Quality: Anahit Tataryan, Procurement: Jeff Brown, Mar Borowinski, Plants: Jack Harrison, Canada: Debbie Melancon 

$1 

$2 

$550,000 

$56.7MM 

$2 

TBD 

$1 

$13,350 

TBD 

$550,000 

11/9/07 

11/9/07 

11/9/07 

11/17/07 

11/26/07 

With 11/9/07 

Process 

On-going 

$2 

$1 

$1 

$2 

68%/70% 

TBD 

11/7/2007 

Sarah Butler 

$58.3MM 

72% 

$14,033 

Name 

Phase 1: Develop & qualify new laser & ink jet compatible label 

September 

$1 

$1 

OBJECTIVE: 

Be recognized by our customers as an irreplaceable lean supply chain partner 

Goals Strategies Measures 2006 Tactics and Points of Focus 

Complete First Time Service Excellence North Line Fill Hansen 1) Collaborate with customers to improve service and reduce costs North 

Order Hansen Drive service improvement against meaures 2004: 96.8% - Provide great service based on our customer's scorecard 

2004: 79.3% that our customers value and reward. 2005: 97.2% - Improve and expand collaborative planning, forecasting & replenishment (CPFR) 

2005: 82.1% 2006: 97.4% - Minimize customer fines and compliance charges 

2006: 83.0% On Time Delivery Briskie - Collaborate with customers to take waste out of our collective supply chains (ie. Year-end rebate buys) 

2004: n/a 2) Synchronize the supply chain to promote unity and standardization Hansen 

2005: n/a - Document and enforce common SOP's for raw material and finished goods pull planning 

2006: 70.0% - Reengineer the forecast process to focus on activities that add the most value in an ELS environment 

Supply Chain Costs Cost Leadership Dodson S.C. Cost Variance Dodson - Install Demand Manager 

% of Net Sales Be the industry leader in cost by 2004: n/a - Improve the accuracy of plant loads 

2004: 66.2% Dodson operating a superior value chain 2005: $0.3MM fav. - Implement formal Operations Planning Forums in all businesses to improve communication and performance 

2005: 65.2% network with a relentless 2006: $0 - Replace current supply planning systems with an integrated Glovia solution 

2006: 62.1 % focus on removing waste and Lean Sigma Savings Smigelski 3) Improve process for managing non-working inventory Hansen 

improving productivity. 2004: $32.7MM - Improve process for managing non-working inventory. Drive 15% reduction 

2005: $28.3MM - Develop and implement SOP's for production smoothing and prebuilds 

2006: $24.5MM - Aggressively manage new product introductions 

ROTC Dodson Superior Asset Performance Inventory Turns Hansen - Conduct monthly inventory review meetings with plants and BU's to ensure we hit targets 

2004: 32.3% Provide leadership to OPNA in ROTC 2004: 7.6 turns 4) Drive SC lean implementation and provide leadership at the Enterprise level Gothi 

2005: 33.9% performance through aggressive inventory 2005: 8.1 turns - Develop plans and organization structure to implement Lean at the Enterprise level 

2006: 36.2% management, effective use of capital and 2006: 7.5 turns - Implement pull processes at all sites to include GTA, set up, lot size and line side supply reduction 

driving understanding of product costs & Non-Working Inv. $ Hansen - Optimize supply models for suppliers to reduce maximim realease quantity 

margins. 2004: n/a - Continue focus on manufacturing flexibility and reliability 

2005: $39.7MM revised $37.9 - Drive lead time reduction across value chain 

Hansen 2006: $31.6MM revised $30.4 5) Drive complexity reduction efforts through the business Briskie 

- Establish next wave finished goods SKU management targets and develop a sustainable execution process 

Consumer Gothi Enterprise Lean Sigma Leadership Plant Quality Gothi - Develop a robust process and drive raw material part number reductions 

Complaints Provide leadership to transform the OPNA 2004: 3668 CDPM 6) Partner with the BU's to improve profitability of Binders / O&P / WI segments Burns 

2004: 22.0 CPM culture to drive out waste and improve 2005: 2543 CDPM - Deliver key savings initiatives - 1:1 cell deployment, Kiefel replacements & selective Binder/O&P global sourcing 

2005: 25.2 CPM operational reliability and flexibility. 2006: 2290CDPM - Ensure flawless execution of BTS through rigorous planning and project management. 

2006: 22.0 CPM % of SKU's per day Smigelski - Implement customer profitability enhancement tactics - custom color/2- pack for trade-up, targeted pricing etc. 

Gothi 2004: n/a 7) Partner with PMG BU to create fast, efficient processes to invest & grow Burns 

2005: 9.1% printable media. 

2006: 12% - Implement & engrain DFLS principles into our culture to improve our new product launch execution & drive growth faster 

- Develop & execute NPD priorities: White/Clear EZ peel, Portable electronics, 2-sided CE biz cards & EZ Use Index Maker 

Organizational Investing in People Haddad % Kaizen Participation Gothi - Implement a robust tooling standardization and management program across all PMG manufacturing 

Capability Haddad Build a highly skilled, motivated and 2004: n/a 8) Lower the cost of quality and improve the consumer / customer experience Gothi 

2004: 27% RN KDR's effective organization, with a culture 2005: 20.7% - Partner with Consumer Quality Experience team to ultimately reduce consumer complaints 

2005: 28% RN KDR's of continuous improvement and 2006: 30.0% - Continue focus on the six key quality strategies at all sites 

2006: 31% RN KDR's learning. RIR Gothi - Improve communication and response to Customer and Consumer qualtiy issues to the organization 

2004: 1.14RIR 9) Drive continued focus on talent development and succession planning Haddad 

2004: 31% HP/SP KDR's 2005: 0.78 RIR - Increase organizational leadership capabilities, project management skills and LeanSigma knowledge 

2005: 35% HP/SP KDR's 2006: 0.95 RIR - Drive an increased level of formal training and development actions, with emphasis on effective performance management 

2006: 40% HP/SP KDR's - Implement a Rewards & Recognition Program that expands employee recognition for excellent performance and results 

2006 Supply Chain OGSM 


Project No: 

Overall Lead: 


Last Update: 



Stat* 


Expense- PD 


Capital 





Net Sales 



Net Income 


qualified. 

Other 















Comments 


















Responsible 

Accountable 







S. Butler 









Involved. 













NPD B. McCarthy 1 1 1 1 3 1 1 1 3 1 1 

Meridian Site 









$1 

$2 

$550,000 

$56.7MM 

$2 

TBD 

$1 

$13,350 

TBD 

$550,000 

11/9/07 

11/9/07 

11/9/07 

11/17/07 

11/26/07 

With 11/9/07 

Process 

On-going 

$2 

$1 

$1 

$2 

68%/70% 

TBD 

11/7/2007 

Sarah Butler 

$58.3MM 

72% 

$14,033 

Name 


September 

$1 

$1 


Project No: 

Overall Lead: 


Last Update: 



Stat* 


Expense- PD 


Capital 





Net Sales 



Net Income 


qualified. 

Other 















Comments 


















Responsible 

Accountable 







S. Butler 









Involved. 













NPD B. McCarthy 1 1 1 1 3 1 1 1 3 1 1 

Meridian Site 









$1 

$2 

$550,000 

$56.7MM 

$2 

TBD 

$1 

$13,350 

TBD 

$550,000 

11/9/07 

11/9/07 

11/9/07 

11/17/07 

11/26/07 

With 11/9/07 

Process 

On-going 

$2 

$1 

$1 

$2 

68%/70% 

TBD 

11/7/2007 

Sarah Butler 

$58.3MM 

72% 

$14,033 

Name 


September 

$1 

$1 


Project No: 

Overall Lead: 


Last Update: 



Stat* 


Expense- PD 


Capital 





Net Sales 



Net Income 


qualified. 

Other 















Comments 


















Responsible 

Accountable 







S. Butler 









Involved. 













NPD B. McCarthy 1 1 1 1 3 1 1 1 3 1 1 

Meridian Site 









$1 

$2 

$550,000 

$56.7MM 

$2 

TBD 

$1 

$13,350 

TBD 

$550,000 

11/9/07 

11/9/07 

11/9/07 

11/17/07 

11/26/07 

With 11/9/07 

Process 

On-going 

$2 

$1 

$1 

$2 

68%/70% 

TBD 

11/7/2007 

Sarah Butler 

$58.3MM 

72% 

$14,033 

Name 


September 

$1 

$1 

Owner 

SW DC CONSOLIDATION METRICS SUMMARY 

# DELIVERABLE OWNER BACKUP FEB MAR APR MAY JUN JUL 

1 Zero transition related injuries Towles Data (1) 

yellow yellow yellow yellow 

2 

Non-disruptive transition for customers including maintaining 93% on-time 

delivery and 98% unadjusted fill rate for SW region Lawrence Data (2) 

green green green green 

3 

Customer compliance performance maintained at: Penalties / Fines < 

.03% of sales; Shortages

The Consultant! 



- 9 -

Executive Summary of The Process: 

Problem was there were GOOD ideas/strategies in the OGSMs but 

they were “buried alive” amongst other desires and spread globally. 

There had to be a way to highlight and prioritize the key deliverables 

and track progress to plan. We had to have swift execution of plans. 

At the end of the day, procurement needs to buy best quality at 

lowest prices with the most favorable terms - Keep it SIMPLE 

Good people + Good processes + Good Tools = Great Performance 

 

 

AD Procurement decided an A3 Strategy Deployment linked to robust MWI 

processes was required for global alignment and execution of top categories 

A3 Strategy Deployment was modeled after Toyota Production System and 

helped break down and link various OGSMs from around company 

 

 


Key stakeholders had to play “catch ball” with documents to ensure they were on track, 

help commit resources and officiate any misalignment 

A3 documents had to be accessible to all, so hidden agendas could be addressed 


- 10 -

Step 1: Strategic Statement 

“What are you going to do” 

• Head Line Strategy → fit for a 

newspaper 

• Clarity on what is to be 

achieved 

• Measurable goals included 

• Avoid “boil the ocean” 

statements that are too generic 

or vague 



- 11 -

Step 2: Scope and Business Case 

“Why should we care” 

• More detail on rationale of strategy 

• Discuss business challenges and 

conditions 

• Highlight market dynamics 

• Address supply situation 

• How will your strategy create 

competitive advantage 



- 12 -

Step 3: Current and Future State of Category 

“What does the goal look like” 

• Use visual maps, graphs, charts to show 

where your strategy is going to take us 

• Demonstrate the “size of the prize” 

• Show cost and/or share changes 



- 13 -

Step 4: Reflect on Last Year’s 

Strategic Initiatives 

“What worked and what didn’t” 

• Be VERY candid about what 

occurred with honest ratings 

• Be descriptive as to what was 

learned and why it won’t 

happen again 

“For those who fail to study the 

past are doomed to repeat it.” 



- 14 -

Step 5: This Year’s (Updated) 

Strategic Initiatives 

“Tweaking Good to Make Great” 

• Strategic Pillars from OGSM 

that have changed should drive 

Action Plan 

• Sometimes a great strategy 

doesn’t need to be altered, just 

clarified 

• Highlight key business 

objectives/results this strategy 

ties to and will deliver 



- 15 -

Step 6: Putting the Strategy 

Into Actionable Tasks 

“Transparency for all to see” 

•Initiatives should be ones 

that are S.M.A.R.T. 

•Call out impacted groups 

that benefit from the initiative 

•Highlight the ONE owner 

•Clarify upcoming milestones/ 

deliverables/actions 

•Show which gate (status) its 

at and how long its been 

there 

•Need resources outside of 

your control Highlight them 

here. 

•Manage by exception only! 

You don’t have time to 

explain green status tasks. 



- 16 -

Step 7: Stakeholder Review and Approval 

“Ensuring Alignment with People who Care” 

• Periodic “catch ball” sessions with key people 

– VERY Important when first developing 

strategy and deployment 

• Monthly webinar for stakeholders and any 

external interested constituent invited to attend 



- 17 -

The “Final” Product - Expires in 30 days 



- 18 -

The Results 

Mission Accomplished….. So far 

Cycle time for Getting Stuff Done cut by approx 40% 

Hard Dollar Savings rates of over 2X historical averages 

DPO was increased by 25% 

Happy and engaged stakeholders (internal survey results high) 

However, in the spirit of continuous improvement, 

the journey continues…. 

 

 


Root cause analysis on each “Stage Gate” and measuring category 

work-streams to understand which process step (feasibility, scoping, 

development, etc.) is taking longer than average and why 

Additional visibility of key A3 procurement activities into business unit 

dashboards for maximum support 

After all….. Procurement is #1, right ! 


- 19 -

Session Wrap Up 

Strategic complexity CAN be properly managed provided 

you take a simplistic and common approach to tackling the 

key deliverables that execute the strategy 

If we had to do it over again……. 

 

MORE INITIAL TRAINING 

 

 

 

More rudimentary project management training for procurement 

people to keep key elements of A3s managed – don’t have each 

objective be the size of an elephant 

Don’t always focus on exceptions – celebrate the good too 

Meeting facilitation effectiveness – managing senior leaders 



- 20 -

Thank you 

John M. Klein 

Global Vice President, Procurement 

Avery Dennison Corporation 

john.klein@averydennison.com 



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Category Strategy Deployment - Summit

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