ACADEMIC FACILITATOR
- Rob Schumacher, Director, Custom Programs
GOALS
- To improve integration of a company built from many acquisitions and develop understanding of value creation and knowledge of supply chains
RESULTS
- Eighty Level 2 and 400 Level 3 leaders have participated
- Tighter integration
- Improved understanding of value creation and logistics
- A set of proposals presented directly to the board
DELIVERING ON GLOBAL INTEGRATION
Deutsche Post World Net (DPWN) has undergone fundamental transformations since the German state postal service was privatized in 1991. By acquiring DHL and diverse other companies, the company rose from a public postal service to a top global logistics provider, with 35 billion Euro in revenues and 350,000 employees. In the process, the company brought together more than 100 different companies, with different histories and cultures, in more than 200 different countries. "We acquired many companies with different philosophies in the last five years," said Wolfhard Bender, Dean of Deutsche Post World Net University. "The problem is not only to acquire them but to bring together the systems and managers. Companies integrate the systems but forget to integrate the managers. This is very important, and this is where many mergers fail."
In 2002, DPWN partnered with Wharton to develop and deliver an intensive program focused on integration and value creation for the company's 80 Level 2 managers. The one-week program, entitled Management for the Future: Integrating Value at Deutsche Post World Net, was such a success that it was then rolled out to 400 Level 3 managers in the following year. "The goal of the program was to understand better that the whole has more value than all its parts," Bender said.
The program was offered every month for a year at Wharton and the company's management center outside Munich. "The sponsor had a very clear purpose: to create a program to facilitate integration of the company," said Wharton Director Rob Schumacher. Wharton conducted a needs analysis, interviewing more than two dozen managers and executives in Bonn. "The analysis identified integration as a central concern but also identified interest in value creation, both through financial management and through innovation," Schumacher said. "Finally, the program was designed to bring all the participants up to speed on the latest thinking and practice in supply chain management."
During the program, participants were challenged to develop solutions to current business problems identified by the company board. The managers then presented their proposals to board members. "One of the things they really wanted was for people to feel more of a sense of urgency to engage in solving problems," Schumacher said. "This small-group work took them out of the-day-to-day, put them in the role of the top management of the company, and encouraged them to think more long term about their roles and what they need to do to make the company successful."
The close cooperation between the company and Wharton in designing and refining the program led to the creation of company-specific cases by faculty. "It was a very open discussion from the beginning," said Bender. "They understood our problems. We had a common sense of direction and came closer and closer together."
Deutsche Post World Net is working on plans for additional programs, and proposals presented to the board by participants are being implemented. The coursework has also launched a new initiative to define and build a new corporate culture for the entire company. "The program was very successful," Bender said. "Look at the feedback of participants. They are saying to do it again."
