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MARCH2012GroupStrategyProjectEndeavourlISSREPORTERwww.iss-shipping.com13Moreoveralleightbusinessfunctionswillhavefullcontroloftheirrespectivestaff.ThismeansthatcommercialstaffreporttoCommercialoperationaltoOperationsregionalfinancetoFinanceetc.Puttogetherthesechangeswillensureasmootherandmorecustomer-focusedorganisationwithstrongcapabilitycentresandlessbureaucracy.Sojusthowwillallthisworkandhowwillitaffectyouandyourday-to-dayworkInFebruaryseniormanagersatanintensivebootcampsessionwerebroughtup-to-speedinunderstandingtheneworganisationaldesignandcommittingtodeliveringhisorhershareofthenecessarytransformationprojects.Thetangibleoutputfromthebootcampisasixweekroadmapofcross-organisationalactivitiestotakefulleffectfrom2April.Theorganisationaldesignisfoundedonamatrixstructurewhichrequiresthevariousbusinessfunctionstoworkcloselytogethertodelivercustomervalue.Soabusymonthaheadforseniormanagersthoughmuchoftheactualchangewilltakeplacewithinthecorporateandregionalfunctionsphasedoverthecourseof2012.AswegotopressClausisembarkingonaworldtourtogivedetailedpresentationswiththeopportunityforopendiscussionabouttheneworganisation.ProjectEndeavourhasreviewedtheorganisationaldesignofthewholeGroup.Thishasresultedinnewlydefinedbusinessfunctionswithnewaccountabilitiesandfocusareas.Selectmanagementgroupshavebeenassessedformanagementpositionsinthetopthreelayersoftheneworganisation.ThoseemployeeswhohavenotbeenassessedwillnotbedirectlyaffectedbyEndeavour.HowevertheneworganisationentailssomedistinctchangesespeciallyintheCommercialorganisationwhichwillrequirenewreportinglinesacrossanumberoffunctions.FirstandforemostcountryGMsx19commercialworkwillbedrivenbytheCommercialfunctionwhichwillrequireadottedreportinglinetotherelevantbusinessunits.Thischangewillnottakeeffectuntillaterintheyear.MoreoverHQandregionalstaffwillbeaffectedbothbytheregionalconsolidationaswellasnewreportinglinestothenewseniormanagementlevels.OperationalstaffworkingunderthecountryGMswillnotbeaffectedbyEndeavour.InevitablyyouwillhavequestionsasEndeavourisrolledout.TherewillbefurthercommuniquscascadedfromseniormanagementyourlinemanagerswillbefullybriefedandavailabletoanswerquestionsFAQswillbepostedonAthenaandofcourseourCEOwillbevisitingmanyofyoutoexplainanddiscuss.FunctionalaccountabilityKPIsandmutualrelationshipsTheneworganisationaldesignseparatesandclarifiesaccountabilitybetweenCommercialDeliveryandcorporateSupportfunctionswhichwillenablesimplifiedandalignedincentivesandKPIsperfunction.ForCommercialandDeliveryfunctionsaccountabilitycanbedistributeddownwardsintherespectiveorganisations.COMMERCIALPurposeCommercialisresponsibleformaximisinggroupearningsthroughsalesonaglobalregionalandlocalleveldependingonthecustomerrelationship.BusinessunitsdefinedbycustomersegmentsHithertoISShashadnumerousbusinessstreamsapproachingcustomersindependentlywithdifferentofferings.Thenewsalesorganisationhoweverwillbedistinguishedbythreeseparatebusinessunitsbasedonuniquecustomersegments1shipownersoperatorsandcharterers2cargoownersandtradersand3supplychainmanagersincludingNGOsandnavies.ItisuptothesalesforcewithineachbusinessunittomaximisethevalueofeachaccountacrossallISSservices.KeyaccountmanagementDuringthecourseof2012Commercialwillsetupaglobalgroup-wideKAMprogrammewhichwilldefinethenewsalesorganisation.Ratherthanhavingnumeroussalesteamsapproachingthesameaccountwithdifferentofferingsintheneworganisationeachaccountoraccountopportunitywillrestwithinonebusinessunitwithoneassignedmanager.TheKAMmayresideeitherwithinthesalesorganisationorasaGMwithlocalrelationships.InadditiontotheKAMtheaccountteammaybecomplementedbySponsorsfromtheexecutivelevelaswellasproductorcountryspecialistsx13alwaysdependingonthecustomerprofile.ProductManagementMarketingThenewEndeavourorganisationstrivestobemorecustomer-focusedwhichrequiresanefficientsalesandKAMorganisationwithsufficienttimetoliaisewithcustomers.ToenablethisthePMMfunctionhasbeenintroducedtoISSresponsiblefordefiningmanagingandmarketingservicesincludingcostandqualityacrossourgeographicalfootprintsothesalesfunctionbusinessunitscanspendtheirtimeselling.OPERATIONSPurposeOperationsisresponsibleformanagingservicedeliveryintermsofbothcostandquality.KeyfeaturesFulloperationalcontrolInthenewOperationsorganisationtheCOOhasfullaccountabilityforexecutionserviceexcellenceservicedeliveryandprocessoptimisation.NotethatthisisverydifferentfromtheoldorganisationwherethetwothenhemisphereshadfullPLincludingcommercialresponsibility.SUPPORTFUNCTIONSPurposeThevarioussupportfunctionsareresponsibleforprovidingguidelinestoolsandcontrolfunctionstomanagingbusinessperformance.KeyfeaturesCorporatefinancialmanagementandcontrolIntheneworganisationGroupFinancewilldefineitsownglobalorganisationofbusinesspartnersandcontrollers.CorporateDevelopmentThisfunctionexpandsthescopeofGroupStrategytoincludeoverseeingcross-organisationalprojectsaswellasdeliveringgroup-widemarketintelligence.DirectreportingAswasalwaysthecasewithComplianceandITallsupportfunctionsnowhavedirectreportinglinestotheirrespectivecorporatefunctionsmeaningthattheywillberesponsibletothefunctionratherthantheregionlocationwhichtheysitin.CorporateprocurementCompliancewillgrowtobecomeCorporateServiceswhichwillinitiallyincludeacorporateprocurementinitiative.