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Establishing Better, Not Just Faster, Communications

Establishing Better, Not Just Faster, Communications. Thomas T. Stallkamp Industrial Partner, Ripplewood Holdings, LLC Automotive News Mfg Conference Birmingham, Al June 14, 2005. Background Info. Industrial Partner, Ripplewood Holdings CEO, MSX International (2000-2004)

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Establishing Better, Not Just Faster, Communications

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  1. Establishing Better, Not Just Faster, Communications Thomas T. Stallkamp Industrial Partner, Ripplewood Holdings, LLC Automotive News Mfg Conference Birmingham, Al June 14, 2005

  2. Background Info • Industrial Partner, Ripplewood Holdings • CEO, MSX International (2000-2004) • President, Chrysler/ President, DCX • Adjunct Faculty, Babson College • Several Boards • Fledgling Author

  3. “the book”

  4. Moving from Conflict to Collaboration • Current system too dictatorial and negative • Based on long standing business culture • When under stress, tactics worsen • Global competition uses different approach • Recent surveys confirm situation

  5. N. American Supply Relationships-5/05

  6. Consequences of Adversarial Approach • Supplier discounting of OEM requirements • Reluctance to invest in new programs • Protection actions to recover price discounts • Loss of loyalty to OEM

  7. Elements of Collaboration Approach • Sense of partnership and shared interests • Shared goals and rewards • Open and unfiltered lines of communication • Clear definition of roles and responsibilities • Freedom to make necessary changes within scope of responsibility

  8. Advantages of Collaboration • Greater dedication from supply base • Access to new R & D ideas • Faster product development • Reduced system costs • Lower overhead and S G & A expense

  9. Focus on 2-way Communication • Sharing essential information • Two-way street • Expand beyond transactional info • Transparent information • Risk sharing must be fact based

  10. Examples of Bad Communication • K-Mart - “Blue Light Always” • MSX Intl – Prowler Cancellation • American Airlines – Mgt Pension Issue

  11. Collaboration in Practice • Toyota • Chrysler SCORE™ and Extended Enterprise™ • Dell Computer • Harley Davidson • Intel

  12. Why Bother to Change? • Global competition • New rules for a new game • Old ways only effective in short-run • Little time left

  13. Establishing a New Model Time to move from an system based on suspicion and control to a new model based on trust and joint collaboration

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