Creating Sustainable Change
description
Transcript of Creating Sustainable Change
![Page 1: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/1.jpg)
Tuesday, February 21, 12
![Page 2: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/2.jpg)
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
![Page 3: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/3.jpg)
FIRST OFF: WHAT IS STRATEGY?
Tuesday, February 21, 12
![Page 4: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/4.jpg)
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
![Page 5: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/5.jpg)
Putting it in Context: Present State of CI/Excellence Initiatives
Tuesday, February 21, 12
![Page 6: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/6.jpg)
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
Tuesday, February 21, 12
![Page 7: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/7.jpg)
7 QC Tools Quality Circles Six Sigma
5‘S’ Daily Work Management TPM
TYPICAL CI INITIATIVES
ALIGNED WITH STRATEGY? | ARE THEY SUSTAINABLE?
Tuesday, February 21, 12
![Page 8: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/8.jpg)
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
Tuesday, February 21, 12
![Page 9: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/9.jpg)
But What Really Happens?
Tuesday, February 21, 12
![Page 10: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/10.jpg)
UNSUSTAINABLE SUCCESS
Launch
Internal Resistance
Success story / scale up
Peak
Decline
Tuesday, February 21, 12
![Page 11: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/11.jpg)
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?
Tuesday, February 21, 12
![Page 12: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/12.jpg)
The Execution Challenge
Tuesday, February 21, 12
![Page 13: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/13.jpg)
SENIOR LEADERSHIP TEAMSTRATEGY/GOALS | BUSINESS
PERFORMANCE METRICS
BUSINESS EXCELLENCE TEAMCONTINUOUS IMPROVEMENT |
WASTE ELIMINATIONLINE STAFF
DAILY FIREFIGHTING | CUSTOMER MANAGEMENT
THE EXECUTION CHALLENGE
Tuesday, February 21, 12
![Page 14: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/14.jpg)
SENIOR LEADERSHIP TEAMSTRATEGY/GOALS | BUSINESS
PERFORMANCE METRICS
BUSINESS EXCELLENCE TEAMCONTINUOUS IMPROVEMENT |
WASTE ELIMINATIONLINE STAFF
DAILY FIREFIGHTING | CUSTOMER MANAGEMENT EXECUTION?
THE EXECUTION CHALLENGE
Tuesday, February 21, 12
![Page 15: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/15.jpg)
‣ 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
Tuesday, February 21, 12
![Page 16: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/16.jpg)
Solving The Execution Riddle
Tuesday, February 21, 12
![Page 17: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/17.jpg)
‣ 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
![Page 18: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/18.jpg)
‣ 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
Tuesday, February 21, 12
![Page 19: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/19.jpg)
‣ 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
![Page 20: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/20.jpg)
‣ 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
![Page 21: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/21.jpg)
‣ 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
![Page 22: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/22.jpg)
‣ 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
![Page 23: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/23.jpg)
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
![Page 24: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/24.jpg)
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
![Page 25: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/25.jpg)
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
![Page 26: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/26.jpg)
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
![Page 27: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/27.jpg)
ISM Best Practices
Tuesday, February 21, 12
![Page 28: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/28.jpg)
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
![Page 29: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/29.jpg)
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
![Page 30: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/30.jpg)
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
![Page 31: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/31.jpg)
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
Tuesday, February 21, 12
![Page 32: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/32.jpg)
TO SUM IT UP
Tuesday, February 21, 12
![Page 33: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/33.jpg)
A bout SSA
Tuesday, February 21, 12
![Page 34: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/34.jpg)
ABOUT US
Tuesday, February 21, 12
![Page 35: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/35.jpg)
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
![Page 36: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/36.jpg)
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
![Page 37: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/37.jpg)
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
![Page 38: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/38.jpg)
SELECT CLIENTELE
Tuesday, February 21, 12
![Page 39: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/39.jpg)
GLOBAL REACH
Tuesday, February 21, 12
![Page 40: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/40.jpg)
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
![Page 41: Creating Sustainable Change](https://reader031.fdocuments.us/reader031/viewer/2022020207/5591b8d31a28abf6088b4592/html5/thumbnails/41.jpg)
Thank You!
Tuesday, February 21, 12