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My presentation on sustaining change initiatives at the recently concluded IQPC Process Excellence Week - Africa
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Tuesday, February 21, 12
PRESENTED BY:PRESENTED TO:
From Strategy Formulation to ExecutionAn Integrated Strategy Management Approach
Naveen NarayananJMD | SSA Business Solutions
21st Feb 2012, Cape Town
Tuesday, February 21, 12
FIRST OFF: WHAT IS STRATEGY?
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SOME INTERESTING FACTS
- 90% of well-formulated strategies fail due to poor execution
- 85% percent of management teams spend less than one-hour a month on strategy issues
- 92% of organizations do not report on lead performance indicators
- 60% of typical organizations do not link their strategic priorities to their budget
- 70% of middle managers and more than 90% of front-line employees have compensation that is not linked to the strategy
- Most devastating, 95% of employees do not understand their organization's strategy
Source: "The Shocking Stats On Why Strategy Execution Fails." Total Performance Excellence | Performance Excellence. Web. 19 Feb. 2012. <http://www.sixdisciplines.com/_blog/The_Six_Disciplines_Blog/post/Why_Strategy_Execution_Fails/>.
Tuesday, February 21, 12
Putting it in Context: Present State of CI/Excellence Initiatives
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NEED OF THE HOUR
PEOPLE ENROLLMENTEVERYONE COMMITTED &
INVOLVED | PROACTIVE PROBLEM SOLVING
PROCESS EXCELLENCECONTINUAL IMPROVEMENT | FACT
BASED MANAGEMENT
WASTE ELIMINATIONREDUCE PROFIT LEAKAGE |
ENHANCE EFFICIENCY
OPERATIONAL EFFICIENCYREDUCE COST | IMPROVE EFFICIENCY
NEED OF THE HOUR
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7 QC Tools Quality Circles Six Sigma
5‘S’ Daily Work Management TPM
TYPICAL CI INITIATIVES
ALIGNED WITH STRATEGY? | ARE THEY SUSTAINABLE?
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PILOT SCALE UP SUSTAIN
PILOT WAVE (6 MONTHS)
- CREATE BUZZ- PROJECT REPOSITORY- LEADERSHIP BUY-IN
SCALE-UP (1 YEAR)
- COMPANY-WIDE ROLLOUT- SUPPORT FUNCTIONS- FINANCIAL FOCUS
- INTERNALIZE KNOWLEDGE- INTERNAL MBBs- ALIGN WITH BUSINESS
PLANNING
INTERNALIZE (3 YEARS)
TYPICAL DEPLOYMENT MODEL
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But What Really Happens?
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UNSUSTAINABLE SUCCESS
Launch
Internal Resistance
Success story / scale up
Peak
Decline
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Web
Hype
‣ Not piloting first‣ Big-Bang rollout
Not Linked with Strategy
‣ Project not linked with strategy
‣ Charters not ratified by champions
Vague ₹ Gains
‣ Project gains not ratified by CFO
‣ Black belts claiming unrealistic savings/improvements
Limited Leadership
Support
‣ Champions not involved at early stages
‣ Leaders not Trained/certified
‣ Lack of Employee Engagement & support
Tool Obsession
‣ Obsession to apply every possible tool/software etc.
‣ Tools ahead of business result
AND WHY THEY FAIL?
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The Execution Challenge
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SENIOR LEADERSHIP TEAMSTRATEGY/GOALS | BUSINESS
PERFORMANCE METRICS
BUSINESS EXCELLENCE TEAMCONTINUOUS IMPROVEMENT |
WASTE ELIMINATIONLINE STAFF
DAILY FIREFIGHTING | CUSTOMER MANAGEMENT
THE EXECUTION CHALLENGE
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SENIOR LEADERSHIP TEAMSTRATEGY/GOALS | BUSINESS
PERFORMANCE METRICS
BUSINESS EXCELLENCE TEAMCONTINUOUS IMPROVEMENT |
WASTE ELIMINATIONLINE STAFF
DAILY FIREFIGHTING | CUSTOMER MANAGEMENT EXECUTION?
THE EXECUTION CHALLENGE
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‣ Improvement initiatives (Six Sigma, Lean, etc.) not aligned with corporate objectives and goals
‣ Bottom-up instead of top-down initiatives
‣ Project pipeline dries up over time
‣ Unable to sustain benefits over time
SUSTAINING THE CI INITIATIVE
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Solving The Execution Riddle
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‣ ISM: INTEGRATED STRATEGY MANAGEMENT SYSTEM✓ Visioning & Strategizing
✓ Program Management
✓ Project Management
✓ Process Management
✓ Performance Management
“ISM® aligns people and the processes with the corporate objectives and goals”
- NC
INTEGRATED STRATEGY MANAGEMENT
Tuesday, February 21, 12
‣ Objective: Institutionalize the annual planning & improvement projects as an integrated management system
‣ Deliverables:✓ Strategy workshop✓ Strategy Management Structure
✓ Project Repository✓ KPI Monitoring System
1. VISIONING & STRATEGIZING
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‣ Objective: Create framework for translating boardroom strategies into implemented solutions
‣ Deliverables:✓ Team Formation✓ Project Linkages w/ Strategy✓ Governance Structure✓ Belt training (YB, GB, BB, MBB)✓ Automated Project Management
2. PROGRAM MANAGEMENT
Tuesday, February 21, 12
‣ Objective: to ensure industry best practices are adhered to during project execution and roadblocks if any are removed in a timely manner
‣ Deliverables:✓ Handholding of teams for execution✓ Project/account management✓ Enterprise-wide knowledge
repository creation
3. PROJECT MANAGEMENT
Tuesday, February 21, 12
‣ Objective: to create and standardize robust business processes, which have the ability to meet the customer commitments consistently
‣ Deliverables:✓ Enterprise-wide process repository✓ Adoption of international standards
9001/27001 etc.✓ Process Audits & Improvement
✓ Process KPI monitoring & improvement
4. PROCESS MANAGEMENT
Tuesday, February 21, 12
‣ Objective: to identify and monitor organizational KPIs and drill them down into department and employee level KPI
‣ Deliverables:✓ KPI identification from strategic
objective
✓ Drill-down KPIs to grass root level✓ Data capture system to track KPIs✓ Automation of performance
monitoring
5. PERFORMANCE MANAGEMENT
Tuesday, February 21, 12
Strategy Committee
Focus Group Internalization & Communication
Master Black Belts
PEx
Communication SLG
Consultants (SSA)
Focus GroupProject Mgmt
Second Layer Group (SLG)
Focus Group Process Mgmt
Focus Group KPI Development &
KRA / KRG
HRM Co-opted
Secretary to Strategy
Committee
!
ISM STRUCTURE
Tuesday, February 21, 12
ANNUAL GOAL SETTING
- OWNED BY ‘PERFORMANCE FOCUS GROUP’ LEADER
- OVERALL BUSINESS PERFORMANCE ANALYSIS
- GOAL SETTING, STRATEGIC THEMES & OBJECTIVES
- DRILL-DOWN TO BUSINESS VERTICAL & DEPARTMENTAL STRATEGY PLANS
BUSINESS VERTICAL STRATEGY PLAN (BVSP)
- OWNED BY ‘BVSP’ LEADER- DRILL-DOWN CORPORATE GOALS TO
BUSINESS VERTICAL LEVEL GOALS- STRATEGIC THEMES OBJECTIVES &
INITIATIVES
DEPARTMENT STRATEGY PLAN
- OWNED BY DEPARTMENT HEADS
- DRILL-DOWN BVSP TO DEPARTMENT LEVEL GOALS
- STRATEGIC THEMES, OBJECTIVES & INITIATIVES
- INTEGRATION OF DSP W/ BVSP
30,000 FT. VIEW
Tuesday, February 21, 12
EXTERNAL CUSTOMER SURVEY- ANNUAL CSAT SURVEY
- DRILL-DOWN CUSTOMER VOICE INTO IMPROVEMENT INITIATIVES
INTERNAL CUSTOMER SURVEY
- ANNUAL INTER-DEPARTMENTAL SURVEY
- IMPROVEMENT PROJECTS IDENTIFIED BASED ON SURVEY
POLICY DEPLOYMENT- KRA LINKAGE WITH STRATEGIC
INITIATIVES
- PERFORMANCE OF PROJECTS REVIEWED BY PROJECT FOCUS GROUP
EXTERNAL CUSTOMER SURVEY
- ANNUAL CSAT SURVEY- DRILL-DOWN CUSTOMER
VOICE INTO IMPROVEMENT INITIATIVES
INTERNAL CUSTOMER SURVEY
- ANNUAL INTER-DEPARTMENTAL SURVEY
- IMPROVEMENT PROJECTS IDENTIFIED BASED ON SURVEY
POLICY DEPLOYMENT- KRA LINKAGE WITH STRATEGIC
INITIATIVES- PERFORMANCE OF PROJECTS
REVIEWED BY PROJECT FOCUS GROUP
30,000 FT. VIEW
Tuesday, February 21, 12
PROJECT MANAGEMENT- ROBUST PROJECT
PIPELINE BASED ON CSAT, DEPARTMENT PROBLEMS, BUSINESS VERTICAL GOALS
- CHAMPION LEVEL OWNERSHIP
- LINKAGE TO KRA- ROBUST MONITORING
MECHANISMS
PROCESS MANAGEMENT- ORGANIZATION WIDE
PROCESS REPOSITORY- IMPLEMENTATION OF KPI- PROCESS AUDITS- REPORT PERFORMANCE
TO STRATEGY COMMITTEE
PERFORMANCE REVIEW- OVERALL PERFORMANCE
EVALUATED ANNUALLY- STRATEGY PLANNING
HELD AT BEGINNING OF YEAR
- ONLINE KPI TRACKING & MONITORING
GOVERNANCE
Tuesday, February 21, 12
ISM Best Practices
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MISSION: “A Great Place to Work”VISION:“Role Model for Environmental, Health, & Safety Performance”“Consistently Most Profitable, and Reliable Refinery”“Market Responsive”
STRATEGIC THEMES:1) Environment & Safety Performance2) Market Responsive/ Customer Focus3) Resource Optimization4) Great Place to Work
STRATEGIC INITIATIVES:1) Six Sigma Projects2) Other Strategic Projects3) People & Process Alignment
TOP DOWN PROJECT SELECTION
Tuesday, February 21, 12
REFINERY VISION:ROLE MODEL FOR EHS | CONSISTENTLY MOST PROFITABLE AND RELIABLE REFINERY | MARKET RESPONSIVE
ENVIRONMENT & SAFETY
PERFORMANCE
MARKET RESPONSIVE/
CUSTOMER FOCUS
RESOURCE OPTIMIZATION
GREAT PLACE TO WORK
✓ Improve Reliability of Fire Extinguishers
✓Bring Down Number of Fires
✓Bitumen Lorry TAT < 2hr.
✓Product Availability for MMPL
✓Biturox Production (All 3 Grades Availability)
✓Minimize fill weight variation of LPG
✓Minimize losses during ATF production
✓Maintain FO line sample viscosity between 150-180
✓ Increase Power Reliability
✓Minimize variation in LPG Filling
✓Sustain Yield as per VDU Column
✓Reducing Tankage TAT✓Minimizing Crude Loss
✓Reduce Wastage in Canteen
✓Minimize complaints in estate
✓ Increase number of suggestions
✓Minimize electricity consumption in estate
✓Optimize overtime in canteen
MISSION:“A GREAT PLACE TO WORK”
PROJECT SELECTION: AN EXAMPLE
Tuesday, February 21, 12
5
2 1
3
4
‣ Align LSS with annual strategy planning/Balanced Scorecard
‣ Projects based on data and Business Intelligence
‣ Monthly steering committee meetings to review progress/identify projects
‣ Customer voice as a source of projects
‣ Linkages with KRA
PROJECT HOPPER
Tuesday, February 21, 12
Strategy Planning: Strategy workshop, Strategy Management Structure, Project Repository, KPI Monitoring Structure
Program Management: Team Selection, Governance Structure, Project Linkage w/ Strategic Objectives, Continuous Improvement StructureProcess Management: Process
Mapping, Process Repository, Process Monitoring Metrics, Change Management System
Performance Management: Customer Touchpoint Analysis, KPI drill-down, Dashboard Creation, KRA/KRG Linkages, KPI Monitoring
Project Management: Clearly Defined Goals, Project Monitoring/Tracking, Process Documentation
IN SUMMARY
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TO SUM IT UP
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A bout SSA
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ABOUT US
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Purpose:To enhance Stakeholder’s Value through partnering for growth; our journey will continue as long as there is a passion for perfection.
Vision:To become the No.1 Business excellence solutions provider in India by 2015 with 20% revenue from overseas consulting.
PURPOSE & VISION
Tuesday, February 21, 12
1999
Six Sigma Alchemy®(P) Ltd. Business Excellence Enablers
SSA IS BORN
- BORN WITH A MISSIONARY ZEAL
- VISION: ‘MAKE MADE IN INDIA SYNONYMOUS TO QUALITY’
MANAGEMENT SYSTEMS
2001
- ISO 9001, QS 9000, ISO 14000, ISO 27001
- HRMS- BPMS- SIX SIGMA
PROCESS EXCELLENCE
2006
- ENTERPRISE-WIDE PROCESS MODELING
- PROCESS REPOSITORY CREATION
- KPI DASHBOARDS- LEAN DEPLOYMENT- GLOBAL ALLIANCES- GLOBAL DEPLOYMENTS
STRATEGIC ALIGNMENT
2011
- INTEGRATED STRATEGY & PERFORMANCE MANAGEMENT SYSTEM
HISTORY
Tuesday, February 21, 12
RATED SE-2A BY CRISIL | HIGH PERFORMANCE CAPABILITY HIGH FINANCIAL STRENGTH
ISO 9001 CERTIFIED
ANSI IACET 1-2007 AUTHORIZED PROVIDER
ISO 27001 ISMS CERTIFIED
ACCREDITATIONS
Tuesday, February 21, 12
SELECT CLIENTELE
Tuesday, February 21, 12
GLOBAL REACH
Tuesday, February 21, 12
Lean Six Sigma
Lean Management
BPMS Solutions
TPM
ISO/ISMS/EMS/OHSAS
Process SimulationDaily Work Management
Project Management
Design for Six Sigma (DFSS)
Performance Management
IT & ITES Support
BASKET OF OFFERING
Tuesday, February 21, 12
Thank You!
Tuesday, February 21, 12
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