Industry Cooperation Necessary for Better Products, Greater Profitability
TRAVERSE CITY, Mich., Aug. 3 /PRNewswire/ -- In a presentation at the
Management Briefing Seminars (MBS 2005) in Traverse City today, Continental
Automotive Systems, North America, President and CEO Bill Kozyra challenged an
audience of automotive industry leaders to shed hierarchical management
systems in favor of a new business model in which automakers and suppliers
collaborate to achieve more innovative products and greater profitability
through collective intelligence.
"A new business model -- multi-enterprise collaboration -- is emerging
that entails new ways of structuring our relationships, new ways of
interacting with one another, new ways of solving problems," said Kozyra.
"This change is not unlike what is going on elsewhere in our culture where new
technologies harness the talents and resources of millions to provide
companies with new sources of innovation and wisdom."
Continental is working toward a formal process for multi-enterprise
collaboration for its business and encouraged attendees to consider doing the
same. The Industry Round Table program provides an opportunity to encourage
competition and innovation among suppliers and OEMs and creates a forum for
continuous learning and knowledge creation within the industry.
"We chose the metaphor of the round table because it reminds us of King
Arthur and his Knights and their outstanding deeds," said Kozyra. "The notion
of the round table evokes camaraderie, equality, common purpose, unity, and
connecting many to many. It represents offense against protocol, and it
embodies a contradiction to rigid, hierarchical systems. These are all
attributes of multi-enterprise collaboration."
Kozyra explained the methodology of an Industry Round Table by describing
its components, among them:
* Identify a pre-competitive challenge you want to solve: A pressing
issue that can be addressed more effectively by collaborating with other
organizations and requires several seats at the table.
* Identify other organizations with the same interest: Map out a
prescribed set of criteria for collaborating with other organizations. A seat
at the table should be determined by decisive factors such as partner
compatibility, competence, business sense, solution orientation, judgment,
knowledge, and interpersonal skills.
* Hire a skilled convener and assemble participants: Locate a
facilitator that is skilled in inter-organizational group dynamics to oversee
the interactions at the table.
* Jointly create a vision, mission, and a set of concrete and attainable
goals and objectives: Each collaborative effort must have a shared vision and
concrete, clear, and attainable goals and objectives that are developed
mutually.
* Mutually provide the necessary resources: All seats at the table
should share in the deployment of resources. Each seat should provide their
best and brightest and contribute equally to the collaboration.
* Establish a structure and processes for operating and ground rules for
communicating: Processes and structures must be precisely defined. Each
entity in the collaboration must share a stake both in the process and the
outcome of the collaboration. Clearly defined and interrelated roles that
constitute a formal division of labor are created and collaborating partners
clearly understand their responsibilities and how to carry out those
responsibilities.
* Measure, measure, measure: The organization must be committed to
measuring its progress relative to its agreed upon goals. Each firm must be
dedicated to meeting the group's long-term and strategic goals.
* Share the rewards: Finally, each organization shares in the product
created by the group's efforts. Everyone wins. Rewards can be equally
allotted, or they can be proportionate to participant contributions.
"The joint problem-solving processes that occur as a result of networked
agreements and trusting relationships will lead to the development of human
capital, increased innovation, accelerated time to market, and industry
cohesion," said Kozyra. "Ultimately, multi-enterprise collaboration leads to
enhanced customer satisfaction and loyalty, improved margins, and higher
return on investment for our shareholders."
With 2004 sales of approximately $15 billion (US), Continental AG is a
major supplier of brake systems, chassis components, vehicle electronics,
tires and technical rubber products. Continental Automotive Systems' North
American operation is headquartered in Auburn Hills, Mich. For additional
information, visit these websites: http://www.conti-online.com and
http://www.contitevesna.com .
SOURCE Continental Automotive Systems
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Related links:
http://www.conti-online.com
http://www.contitevesna.com
Company News On-Call:
http://www.prnewswire.com/comp/437525.html
CONTACT:
Jim Gill, M.S., APR, of Continental
Automotive Systems, +1-248-393-5210, +1-248-882-6309 (cell),
jim.gill@usa.contiteves.com
NOTE TO EDITORS: Copies of Kozyra's full remarks are available
upon request. Please contact Jennifer Rass at 248-393-5218 or
Elizabeth Weigandt of the Continental News Bureau at 248-362-4200
or eweigandt@baileypr.com .
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