Avon Canada
The Promise Project
GROUP 4 GENNA BERSANI, ERICA WYNN-KEARSE, ANTHONY SMITH
Agenda
AVON BACKGROUND
PROJECT OVERVIEW
TIMELINE
INITIAL PROBLEMS/RED
FLAGS
MATURITY LEVELS
PREVENTION
RECOVERY
LESSONS LEARNED
Who is Avon?
Beauty Product Company
Founded in 1886
Multi-level Marketing Structure
Offices in over 100 Countries
Millions of Representatives
CEO at the time: Andrea Jung
Pic 1: [Link]
Pic2: [Link]
Project Background Perspective
2006, Avon announces its plan to invest in its Representatives
$120 million investment in revisions
Expected $400 million cost savings
Initiatives included:
Training representatives for leadership
Restructuring global supply chain operations
Realigning certain local business support functions
Streamlining transaction-related services
Why Create the Promise Project?
Problem:
Original Ordering Done from Catalogs
Slow order placement or acknowledgement
No indication of availability or backlog
Result:
Unfulfilled orders
Backlogs
Excessively Long Lead Times
Pic: [Link]
The Promise Project
Goal:
Create a new interface and app for use on mobile devices
Integrate real time inventory and shipping info
The Result:
Install three separate pieces of software to update the process
SAP
CRM (Customer Relations Module)
ERP (Enterprise Resource Planning)
IBM WebSphere e-commerce
Timeline finish by late 2012 (less than 2 years)
Budget Between $100-120 million ROI of 5 years must not be exceeded
Pic1: [Link]
Timeline
2006:
Announcement
to stakeholders
May 2011: Plan
is signed off by
Executive
Leadership
Late 2012: Big
Bang Release
in Canada
2014:
Estimated
$48.4 Million
Loss
Today: Still
amassing losses
2010: Planning
Began
A team is
established in
White Plains, NY
and comprised
of select
associates from
Brazil, Mexico,
Russia, US, and
UK
April 22, 2012:
Andrea Jung is
Replaced with
Sherilyn McCoy
2013: Shut
Down in Q3
$55.4 Million
Loss
Initial Problems
Combined two independent vendor products with a third party to
integrate
No clear Lead Project Manager Identified
Hiring individual PMs for each module of software during building process
Leadership of the company lacked cultural competence
Executive Sales Leader had little knowledge of new technology being
launched
Large Scale Project
Poor communication with sales reps
Mobile App concept was relatively new
Rollout and Problem Discovery
In 2012/2013, the Promise project was released in Canada
From the start, Representatives faced issues
Couldnt properly use the new system
Logging in
Saving orders
Checking Inventory
Saving Inventory
Representatives
Not tech savvy
Part time Low Pay
No incentives to stay
Results
Estimated that 16,000 employees left the company
Total Number of Avon Representatives lost: 6.21mill (2013) 5.96 mill(2014)
(4% decrease)
7% decline in revenue by Q3 of 2013
Discontinued global rollout indefinitely
1. Project Integration
Level:
Project Plan
Development
Ad hoc
Documented
process
Risk, cost,
schedule,
quality, HR
Integrated w/
organizations
strategic plan
Improvement
process in
place
Project Plan
Execution
Informal,
verbal
direction
Summary
level metrics
Detail level
metrics,
templates
Variance &
performance
analysis
Lessons
learned
Change
Control
Ad hoc,
without PM
awareness
Scope only
changes
identified
Scope, cost,
schedule
identified
Integrated w/
control, risk
management
Changes are
in efficiency
metrics
Project
Information
System
None
Simple PM
information
system
Standardized
system for all
projects
Automated
system
Continuous
improvement
of data & sys.
Project Office
Informal, no
standards or
training
Established,
training
available
PM methods,
PM training
mandatory
Best practice,
PM training
for all team
Cost-tracking
support, EV,
PMP training
Project Management Maturity Model, Crawford, 2002
2. Project Quality Management
Level:
Quality
Planning
High-level
plans, ad hoc
Metrics of
reviews, tests
Quality
milestones,
checklists
Product
environment
included
Process
critiqued
during project
Quality
Assurance
No
established
practices
Walkthroughs
peer reviews
QA checklists
standard
Walkthroughs
with other
project teams
Feedback on
processes
Quality
Control
No
established
practices
Guidelines for
testing (unit,
integration)
Standards for
testing, client
involvement
Performance
standards in
place
Decisions on
usability and
fit of product
Management
Oversight
Management
involvement
limited
Mgt assigns
PM, receives
reports
Institution has
standard PM
practices
Integrated w/
corporate
processes
Active role in
management
Project Management Maturity Model, Crawford, 2002
3. Human Resources
Management
Level:
Organization
Planning
Ad hoc
assignment,
informal
report
Skill sets,
timeframe
identified
Resource
constraints
included
Resource
mgt and
prioritization
Periodic
evaluation
Staff
Acquisition
Ad hoc
Skill
matching,
resource cost
Resource
pool
management
Skills
inventory
data base
Enterprise
resource
forecasting
Team
Development
Occasional
team
meetings
Kickoff,
reviews,
meetings
Collocation,
peer
evaluation
Team
member
training
Member
training
forecasting
Professional
Development
No standards
or processes
for PM
PM exper &
knowledge
required
Solid PM
exper &
knowledge
Corporate PM
development
Lessons
learned
training
Project Management Maturity Model, Crawford, 2002
4. Communications Management
Level:
Communications
planning
No standards
Informal
stakeholder
analysis
Comm plan
expected for
all projects
Update and
refine comm
mgt plan
Lessons
learned
analyzed
Information
Distribution
Ad hoc
distribution
of
information
Stakeholder
distribution of
status
Formal info
status system
for stkholder
Automated
database
queries
Improve
process
measures
Performance
Reporting
Informal
reporting of
status
Summarize
status,
progress
Graphical
performance
reporting
Formal
variance &
trend analysis
Efficiency &
effectiveness
metrics
Issues
Tracking
Issues
handled as
ad hoc basis
Issues
management
not enforced
Regular
issues
meetings
Impacts of
issues on
other areas
Tracking
process
evaluated
Project Management Maturity Model, Crawford, 2002
5. Project Risk Management
Level:
Risk
Identification
Risks not
identified
Risk
identification
process
Standards for
risk/symptom
identification
Integrated w/
cost & time
mgt, PMO
Identify org.
priority,
lessons learn
Risk
Quantification
Speculate on
impact if risks
occur
Structured
approach to
rating risks
Multiple
criteria
prioritization
Integrated w/
cost & time
mgt, finance
Improve
quantification
Risk
Response
Development
Risks
considered
as they arise
Informal
strategy for
handling risks
Contingency
plans
Integrated w/
cost & time
mgt, PMO
Tracking
project
reserves
Risk Control
Day-to-day
problem
solving
Individualized
approach to
managing risk
Risks
routinely
tracked
Integrated
with control
systems
Risk assess
included in
proj execution
Risk Documentation
No historical
database
Some
historical
data
Historical
data on
common risks
Interdependent risks
betw projects
Improve
collection
activity
Project Management Maturity Model, Crawford, 2002
Recovery
Form Task Force to Analyze User Interface
Cross-functional Team
New Training Program
Top-down approach
Training Simulation
Recovery Team
Identify Risk and Mitigation techniques
Assessing Representatives Capabilities
Propose Ideas for future updates using collected data
Prevention
Improved Initial Planning Phase
Phased Approach
Include sales execs and representatives
Improved communication
Investors
Representatives
Hire Experienced Project Manager
User testing
Provide training opportunities for representatives
Lessons Learned
Learn from previous failures
Importance of understanding company culture
Planning should include members of each level
Testing should start small
Softer Rollout when possible
Open Communication
New Software = Employee Training
Questions?
KIND REGARDS
Group 4
Picture Sources:
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Slide 4:
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References
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