Agility Benchmarking By: Victoria Arnold Tammy Kieper Kendall Tupper Diane Vavrasek

Agility BenchmarkingAgility Benchmarking

By: By: Victoria ArnoldVictoria ArnoldTammy KieperTammy KieperKendall TupperKendall TupperDiane VavrasekDiane Vavrasek

ALDI’s Discount ALDI’s Discount SupermarketSupermarket

ALDI (ALbrecht-Discount) ALDI (ALbrecht-Discount)

opened its first store in 1948 in Essenopened its first store in 1948 in Essen

The two brothers wanted to offer high quality The two brothers wanted to offer high quality

products at non-compete pricesproducts at non-compete prices

Today, there are 7,544 ALDI (Nord/SUED) Today, there are 7,544 ALDI (Nord/SUED)

outlets on 3 different continentsoutlets on 3 different continents

The geographical divisionThe geographical division

ALDI’s PrinciplesALDI’s Principles ALDI’s guarantee is ALDI’s guarantee is INCREDIBLE VALUE EVERY DAYINCREDIBLE VALUE EVERY DAY

"Top quality at incredibly low prices" "Top quality at incredibly low prices" "Spend a little, live a lot" "Spend a little, live a lot"

The discount supermarket is specialized in staple and other The discount supermarket is specialized in staple and other inexpensive household items (labeled own brand)inexpensive household items (labeled own brand)

Special weekly offers include electronic devices, clothing … to Special weekly offers include electronic devices, clothing … to diversify the assortmentdiversify the assortment

Aldi's "strictly no frills" approachAldi's "strictly no frills" approach keeps costs low keeps costs low

Aldi's minimal staffing levelsAldi's minimal staffing levels compress expenses compress expenses

The discount stores are kept small shops to avoid high RE prices The discount stores are kept small shops to avoid high RE prices

Agile Aspects of ALDI: Agile Aspects of ALDI:

““When attacked, a decentralized organization When attacked, a decentralized organization tends to become even more open and tends to become even more open and

decentralized.”decentralized.” (page 21)(page 21)

∙∙ ALDI long time accused of sellingALDI long time accused of selling low-quality products low-quality products found its way found its way into mainstream by diversifying its assortment (cook books, into mainstream by diversifying its assortment (cook books, electronics …)electronics …)

∙∙ ALDI feels strongly that the company’s success can be ALDI feels strongly that the company’s success can be attributed to its decentralized organizational structureattributed to its decentralized organizational structure

∙∙ According to some sources, every week an ALDI store opens According to some sources, every week an ALDI store opens somewhere in the world reinforcing its market presence and agility somewhere in the world reinforcing its market presence and agility

Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

““An open system doesn’t have central intelligence; the An open system doesn’t have central intelligence; the intelligence is intelligence is

spread throughout the system”spread throughout the system” (page 39 & 40)(page 39 & 40)

∙∙ ALDI’s flat hierarchy gives open space to local store ALDI’s flat hierarchy gives open space to local store management and management and ALDI N/S are independent organizations ALDI N/S are independent organizations

∙∙ The main objective of the Albrecht brothers was and is to The main objective of the Albrecht brothers was and is to improve the system (catalysts)improve the system (catalysts)

∙∙ ””Konsequent einfach” (by consequence, simple) is one of ALDI’s Konsequent einfach” (by consequence, simple) is one of ALDI’s principals: there are no concepts longer than one page to keep principals: there are no concepts longer than one page to keep the system simple the system simple

Agile Aspects of ALDI:Agile Aspects of ALDI:


Agile Aspects of ALDI:Agile Aspects of ALDI:

““Open systems can easily mutate”Open systems can easily mutate” (page 40)(page 40)

∙∙ ALDI, among Germany’s top five supermarket discount chains, has ALDI, among Germany’s top five supermarket discount chains, has managed to become one of the 8 biggest textile distributors, and gained a managed to become one of the 8 biggest textile distributors, and gained a 18% market share in the “health-product” industry18% market share in the “health-product” industry

∙∙ Entry barriers are low however, ALDI’s thirst for innovative projects Entry barriers are low however, ALDI’s thirst for innovative projects (Yesss…) keeps them ahead of their main competitor Lidl (Yesss…) keeps them ahead of their main competitor Lidl

∙∙ ALDI has proven its adaptability to political and economic decisions (Euro-ALDI has proven its adaptability to political and economic decisions (Euro-Teuro, open hours, wages …)Teuro, open hours, wages …)


ALDI’s Mission:ALDI’s Mission:

ALDI’s mission is to stay loyal to its principle, as to ALDI’s mission is to stay loyal to its principle, as to know providing customers with high quality know providing customers with high quality

products for very low pricesproducts for very low prices

““They will always stay leaders because they trust in their people” They will always stay leaders because they trust in their people” ““The concept of simplicity and discount of ALDI has been imported into other The concept of simplicity and discount of ALDI has been imported into other

industries (Porsche)” industries (Porsche)” (Page 4) (Page 4)

Source: Van Meggelen, Madsen, Smith, 2005

Digium’s Asterisk *Digium’s Asterisk *

∙∙ Asterisk Software was developed in 1999 by Mark Asterisk Software was developed in 1999 by Mark Spencer while he was working for Digium Spencer while he was working for Digium

∙∙ He wanted to provide his customers with 24-hour He wanted to provide his customers with 24-hour technical support technical support

∙∙ He created telephony system that could connect via He created telephony system that could connect via software to the CPU that interfaced with a telephone software to the CPU that interfaced with a telephone circuitcircuit

Source: (www.digium.com) & (Van Meggelen, Madsen, Smith, 2005)

PBX System Example:PBX System Example:

Source: www.quintum.com/images/Remote-Office-PBX.jpg

Digium’s Values:Digium’s Values:

∙ Asterisk was built with the customer’s ideas in mind

∙ Open source development

∙ Offers free downloadable software

∙ Customers include small, medium, or large sized organizations, & individual home owners

∙ Provide customers with consulting and technological support

Source: (www.digium.com) & (Van Meggelen, Madsen, Smith, 2005)

Agile Aspects of Digium: Agile Aspects of Digium: ““When attacked, a decentralized organization When attacked, a decentralized organization

tends to become even more open and tends to become even more open and decentralized.”decentralized.” (page 21)(page 21)

∙∙ Many organizations fear computer hackers because they of the Many organizations fear computer hackers because they of the potential degradation of computer systemspotential degradation of computer systems

∙∙ Digium feels their success is attributed to employees’ ability to hack Digium feels their success is attributed to employees’ ability to hack into different systemsinto different systems

∙ ∙ Digium encourages these abilities – feel hackers built the internet and Digium encourages these abilities – feel hackers built the internet and the Apple computer & they will continue to play a large role in creating the Apple computer & they will continue to play a large role in creating future telecommunication servicesfuture telecommunication services


““An open system doesn’t have central intelligence; the An open system doesn’t have central intelligence; the intelligence is intelligence is

spread throughout the system”spread throughout the system” (page 39 & 40)(page 39 & 40)

∙∙ Digium does not assign employees specific tasksDigium does not assign employees specific tasks

∙∙ Promotes idea sharing amongst workers with diversified industry Promotes idea sharing amongst workers with diversified industry and and experience backgroundsexperience backgrounds

∙∙ Digium employees are equipped with advanced problem Digium employees are equipped with advanced problem solving solving skills skills and are highly motivated by innovationand are highly motivated by innovation

∙∙ Digium’s culture - customers having total say in the design of Digium’s culture - customers having total say in the design of their their telecommunication servicetelecommunication service

Agile Aspects of Digium:Agile Aspects of Digium:



““Put people into an open system and they’ll Put people into an open system and they’ll automatically want to contribute”automatically want to contribute” (Page 74)(Page 74)

∙∙ Digium’s competitors (AT&T and Verizon) utilize small work teams Digium’s competitors (AT&T and Verizon) utilize small work teams to develop new products whereas Digium creates work teams that to develop new products whereas Digium creates work teams that consist of hundreds of employees contributing in brainstorming consist of hundreds of employees contributing in brainstorming sessions sessions



““Open systems can easily mutate” Open systems can easily mutate” (page 40)(page 40)

∙∙ With the development of Asterisk, Digium wants and encourages With the development of Asterisk, Digium wants and encourages others to enter into the market others to enter into the market

∙∙ Very low barriers to entry Very low barriers to entry

∙∙ ““It is now possible for someone with an old $200 PC to develop a It is now possible for someone with an old $200 PC to develop a communications system that has intelligence to rival the most communications system that has intelligence to rival the most expensive proprietary systems.”expensive proprietary systems.” (page 208)(page 208)


Digium’s Mission:Digium’s Mission:

TTo encourage the telecommunications o encourage the telecommunications industry to evolve into an era of industry to evolve into an era of

flexibility and creativityflexibility and creativity

““These people These people (the Digium community) (the Digium community) all share all share a common belief: that the telecommunications a common belief: that the telecommunications

industry needs a proper revolution. industry needs a proper revolution.

Asterisk is the catalystAsterisk is the catalyst.”.” (Page 4)(Page 4)

Source: Van Meggelen, Madsen, Smith, 2005

Google: OverviewGoogle: Overview

Google, first officially established in 1998, was the Google, first officially established in 1998, was the brainchild of Larry Page and Sergey Brinbrainchild of Larry Page and Sergey Brin

Page and Brin developed a new approach to online Page and Brin developed a new approach to online search out of a Stanford dorm roomsearch out of a Stanford dorm room

The new type of search had the unique ability to The new type of search had the unique ability to analyze the “back links” in a website analyze the “back links” in a website

Two short years after conception, in 2000, Google Two short years after conception, in 2000, Google became the world’s largest search enginebecame the world’s largest search engine

Google: What is it?Google: What is it?

Google is named for the mathematical term “Googol” or Google is named for the mathematical term “Googol” or a 1 followed by 100 zerosa 1 followed by 100 zeros The term was coined by Milton Sirotta and made The term was coined by Milton Sirotta and made

popular in the book “Mathematics and the popular in the book “Mathematics and the Imagination”Imagination”

Company lore states that the name Google was Company lore states that the name Google was chosen because Googol reflects the company’s chosen because Googol reflects the company’s mission to organize the enormous amount of mission to organize the enormous amount of information on the webinformation on the web

Google: ProductsGoogle: Products

Google generates revenues through two venues: Google generates revenues through two venues: Targeted advertising Targeted advertising

AdWords, AdSenseAdWords, AdSense

Online search servicesOnline search services Google Search ServicesGoogle Search Services

Google hosts a large number of “Google Domains”Google hosts a large number of “Google Domains” Finance, News, Images, Video, EarthFinance, News, Images, Video, Earth

Google: MissionGoogle: Mission

Google’s mission is “to organize the world’s information Google’s mission is “to organize the world’s information and make it universally accessible and useful”and make it universally accessible and useful”

Continuously thinking about ways technology can Continuously thinking about ways technology can improve existing ways of doing businessimprove existing ways of doing business

Exploration of new areas and ideas Exploration of new areas and ideas

Nurture the new areas and make them prosperNurture the new areas and make them prosper

Google: PhilosophyGoogle: Philosophy

Never settle for the bestNever settle for the best Google still remains committed to providing the best Google still remains committed to providing the best

level of service to those who seek information level of service to those who seek information regardless of where they are locatedregardless of where they are located

Continuous commitment to innovation, trailblazing and Continuous commitment to innovation, trailblazing and the creation of the perfect search engine the creation of the perfect search engine

10 things Google has 10 things Google has found to be truefound to be true

1.1. Focus on the user and all else will follow.Focus on the user and all else will follow.

2.2. It’s best to do one thing really, really well.It’s best to do one thing really, really well.

3.3. Fast is better than slow.Fast is better than slow.

4.4. Democracy on the web works.Democracy on the web works.

5.5. You don’t need to be at your desk to need an You don’t need to be at your desk to need an answer.answer.

10 things Google has 10 things Google has found to be truefound to be true

6.6. You can make money without doing evil. You can make money without doing evil.

7.7. There’s always more information out there.There’s always more information out there.

8.8. The need for information crosses all borders.The need for information crosses all borders.

9.9. You can be serious without a suit. You can be serious without a suit.

10.10. Great just isn’t good enough.Great just isn’t good enough.

Google: AgileGoogle: Agile

Strong sense of corporate values and mission aligns Strong sense of corporate values and mission aligns all employees in the organizationall employees in the organization

Strong employee engagementStrong employee engagement Employees incorporate values into everyday life at Employees incorporate values into everyday life at

GoogleGoogle

Google continuously looks to extend its reachGoogle continuously looks to extend its reach Translating web pagesTranslating web pages Customizable adsCustomizable ads

Google: AgileGoogle: Agile

Small managerial hierarchy Small managerial hierarchy Little to no communication barriersLittle to no communication barriers

Employees wear “several hats”Employees wear “several hats” Hiring is based on ability and not experienceHiring is based on ability and not experience

““Because everyone realizes they are an equally important Because everyone realizes they are an equally important of Google’s success, no one hesitates to skate over of Google’s success, no one hesitates to skate over a corporate officer during roller hockey.”a corporate officer during roller hockey.”

Google: Continuing on…Google: Continuing on…

““The perfect search engine would understand exactlyThe perfect search engine would understand exactly

what you mean and give back exactly what you want.” what you mean and give back exactly what you want.”

––Larry PageLarry Page

W.L. GoreW.L. Gore

Founded in 1958Founded in 1958

Currently 7,500 employeesCurrently 7,500 employees

45 Locations around the world45 Locations around the world

Revenues of over $1.98BRevenues of over $1.98B

Profitable for 35+ consecutive yearsProfitable for 35+ consecutive years

Best known for Gore-Tex fabricBest known for Gore-Tex fabric

Gore’s CompetitorsGore’s Competitors

Belden CDT Inc-Belden CDT Inc- cable and wire products cable and wire products

Burlington Worldwide-Burlington Worldwide- manufactures barrier fabrics manufactures barrier fabrics

Sustained competitive advantage lies in the Sustained competitive advantage lies in the organizational culture and structureorganizational culture and structure

Gore’s CultureGore’s Culture

Team based environmentTeam based environment Fosters personal initiativeFosters personal initiative Encourages innovationEncourages innovation Promotes person-to-person communication among Promotes person-to-person communication among

all associates all associates

No formal mission statementNo formal mission statement

Lattice StructureLattice Structure

No chains of command or predetermined channels of No chains of command or predetermined channels of communicationcommunication

““Associates” & SponsorsAssociates” & Sponsors

Leaders emerge through “followership”Leaders emerge through “followership”

Compensation tied to individual’s contributionsCompensation tied to individual’s contributions

OutcomesOutcomes

Common ThemesCommon Themes

OrOr

Unique Differences?Unique Differences?

Documents

Agility Benchmarking By: Victoria Arnold Tammy Kieper Kendall Tupper Diane Vavrasek