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Life Cycle Management (LCM) Barriers and enablers to adoption
Claire Mortimer & Anthony HumeLandcare Research
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International lit & NZ case studies
• LCM programme with six NZ case studies
• Collation of international experience
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Emerging LCM definition
• Institutional shift in nature of business
• Integrated organisational approach
• Integrated value chain • Integrated value chain management approach
• A flexible approach• A pragmatic approach
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LCA & LCM uptake internationally
• LCA methodology issues have dominated • Early comparison across sectors/countries • Later comparison of similar firms
• Every firm is different in it’s uptake (tailoring)• Factors driving LCM both internal and external to
firm
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• Critical factor of success• Prioritises focus• Can build commitment• Suggests tailored versus
standardised
Tailoring LCM to firm’s strategy & context (Organisational)
standardised programmes
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Recognising complexity (Organisational)
• LCM changes the whole organisation
• Tangible senior management supportsupport
• LCM champion needs communications & organisational skills
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NZ experience
• Firm didn’t anticipate time required for communication and organisational change
• LCM big concept - only now starting to embed• Staff had limited literacy in one firm• Staff had limited literacy in one firm• Important to align with existing or concurrent
programmes e.g. LEAN when possible• Difference between being used to change
processes and being good at embedding change processes
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Cost–benefit of LCM adoption (Organisational)
• Costs may outweigh the immediate benefitsbenefits
• Need to factor in less tangible benefits
• Prioritise projects that provide quick financial success
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NZ experience
Some firms achieved early benefits• 5 new products designed • ‘We have reduced costs with improved environmental
performance’.• ‘It’s been a great programme for us”..costs & benefit • ‘It’s been a great programme for us”..costs & benefit
realised’Intangible and long term benefits• ‘It’s a key part of brand values and our proposition’• ‘LCM will help with future business opportunities’But..• The staff resources high especially for small firms• Recession reduced customer demand
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Ability to implement supply chain management
(Organisational Field)
• Shift to inter-organistional collaboration
• Challenge for • Challenge for complex products and small firms
• Different approaches developing based on LCM drivers
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NZ experience
Barriers • Few firms felt able to influence supply chain • Supplier relationship often too weak to facilitate info
transfer• Key technical and environmental issues outside
control• Limited of better options in New Zealand
Enabler • Our scale and influence to control makes change
possible
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Next steps
• Finish research programme
• Release of findings
• Revise and develop of LCM services for wider use– Develop NZ company business case – Need smart ways of engaging with senior staff upfont– Set up links to other pre-existing programmes
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Thank you