What he found:

-Company was lagging its competitors in both financial & market performance
-Consumers were becoming more price and health conscious
-Campbell was competing with giants such as Kraft and Nestle.

Rejuvenation Strategy
Shift Campbells portfolio of brands and products to emphasize growth, and driving a quality
agenda. Distinguish core business activities from non-core, then manage non-core for low cost
while managing core (sales, marketing, and R&D, trade management, & product lifecycle
management-for differentiation and growth).
Project Harmony
Four year effort to create more standardized and integrated business processes Campbell did not
want to experience the performance dip common in companies implementing major new
systems. SAP (Systems Applications and Products) selected with New Governance Design that
includes
1.
2.
3.
4.

Allocate ownership of project outcomes to senior executives

Free up top talent to ensure effective process design and smooth implementation
Benefit from the expertise of external partners
Empower stakeholders to learn from one another and drive benefits from new systems
and processes

Original Plan
Reduce Operating Costs
Improvements
Supply Chain
Accounting
Customer Service
Sustained Benefits
Impacts on Leadership
Depended more on empowering workforce across functional lines to improve business
performance. Campbell was significantly outperforming industry averages evidence is
Shareholders returns of 16.2% vs. industries 7.7% in 2007, by incorporating First corporate CIO

Campbell software
Overtime Campbell had developed multiple software applications to meet specific needs that
created nonstandard business processes. Campbell was like a many different stores ; each one
doing business differently . Confusing for customer
Infrastructure
Clean up its systems and transform it business processes
Not just process improvement; create more competitive and agile company
The Big Change

These were horizontal business streams. Standardizing and integrating these made them more
efficient and improved customer service
One Standard Solution
Not deviating from the process but offering on standard solution, even if its not perfect; the
standardization benefits will outweigh the loss.-David White SVP GSC
Total Delivered Cost (TDC)
New key performance metric to focus managements attention
End to end cost of producing a product and getting it to the customer

Impact on Organizational Structure

Peeling the Onion approach starting with broad goals and high level expectations and drilling
down to work group and individual level . Moved the project team into a separate building and
focused full time on project implementation. People has their areas back-filled or restructured

Created functional roles, which described the different sets of responsibilities that somebody
would need to perform in each process

The companys culture.

Most profound change Customer Care employees could manage by exception; they followed up
on fewer order problems while responding more effectively to orders needing their attention.
Supply Chain employees reported the ability to quickly diagnose errors and provide training
when errors resulted from people mistakes.
New Culture
Managers can now identify where they can improve the process
Now there is an infrastructure that encourages and allows process improvements.
After each roll-out the lessons learned were captured and passed on to the next site
New Company
Pretend you have joined a new company, you have to forget everything youve been doing for
the last however years
-Nigel Payne

B- Outsourcing Benefits to Campbell

Had Decentralized IT made IT more standarized and centralized
IS Lite Approach
Centralized shared IT services not unique to business units
Outsource IT responsibilities that did not differentiate the company from its competitors
Focus. By outsourcing the non distinctive; IT leaders could focus on strategic requirements such
as relationship management, governance and architecture.

Not necessarily cheaper to out source infrastructure operations and other technical
responsibilities; but

gained a partner who could deliver best practice, readily available

computing capacity, and protection against disasters

Outsourcing
To IBM most IT operations and desktop support
IBM took on more application maintaince
IBM ;three in the box management team
An account manager;coordinated IBM sales and services
IBM Business Consulting services; Campbells client satisfaction and IBMs revenue and profits
goals
Executive IBM strategic outsourcing
IBM
IBM was the Campbells integration partner for the their SAP implementation.
Win-Win for Campbell and IBM
Campbell was driving costs down by outsourcing while IBM was getting Campbell business
value projects (SAP) and able to add new requirements into their contract.
IBM $
IBM consistently reduced their annual base charges
The total IBM contract grew between $.5 and $1 million a year because of the new service
requirements

Campbell Soup Company has outsourced its day-to-day European treasury and cash
management activities to an external provider for a number of years. Prompted by a
change in our European cash management bank, we took the decision to review our
outsourcing arrangements, resulting in a change of provider.
Having conducted an initial review of the available options, we decided to send an RFP
to our existing provider and Bank of America. Based on the responses and follow up

discussions with both banks, we decided to transfer our treasury outsourcing to Bank of
America. There were a variety of reasons for this:
i) The business processes were more consistent with best practices and more
automated than our existing outsourcing partner.
ii) Our existing outsourcing partner had an arrangement where one relationship
manager was responsible for our business. This meant that if that person was on
vacation, sick or left the company, there was a knowledge gap which took time to
resolve and created some risk to our business. Bank of America had three-person teams
as opposed to a single individual working on each account, so there was less risk of this
knowledge gap occurring. So far, we have found this approach very helpful.