creating sustainable change

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

FIRST OFF: WHAT IS STRATEGY?

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/>.

Putting it in Context: Present State of CI/Excellence Initiatives

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

7 QC Tools Quality Circles Six Sigma

5‘S’ Daily Work Management TPM

TYPICAL CI INITIATIVES

ALIGNED WITH STRATEGY? | ARE THEY SUSTAINABLE?

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

But What Really Happens?

UNSUSTAINABLE SUCCESS

Launch

Internal Resistance

Success story / scale up

Decline

‣ 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?

The Execution Challenge

SENIOR LEADERSHIP TEAMSTRATEGY/GOALS | BUSINESS

PERFORMANCE METRICS

BUSINESS EXCELLENCE TEAMCONTINUOUS IMPROVEMENT |

WASTE ELIMINATIONLINE STAFF

DAILY FIREFIGHTING | CUSTOMER MANAGEMENT

THE EXECUTION CHALLENGE

SENIOR LEADERSHIP TEAMSTRATEGY/GOALS | BUSINESS

PERFORMANCE METRICS

BUSINESS EXCELLENCE TEAMCONTINUOUS IMPROVEMENT |

WASTE ELIMINATIONLINE STAFF

DAILY FIREFIGHTING | CUSTOMER MANAGEMENT EXECUTION?

THE EXECUTION CHALLENGE

‣ 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

Solving The Execution Riddle

‣ 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”

INTEGRATED STRATEGY MANAGEMENT

‣ 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

‣ 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

‣ 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

‣ 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

‣ 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

Strategy Committee

Focus Group Internalization & Communication

Master Black Belts

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

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

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

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

ISM Best Practices

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

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

‣ 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

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

TO SUM IT UP

A bout SSA

ABOUT US

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

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

- ISO 9001, QS 9000, ISO 14000, ISO 27001

- HRMS- BPMS- SIX SIGMA

PROCESS EXCELLENCE

- ENTERPRISE-WIDE PROCESS MODELING

- PROCESS REPOSITORY CREATION

- KPI DASHBOARDS- LEAN DEPLOYMENT- GLOBAL ALLIANCES- GLOBAL DEPLOYMENTS

STRATEGIC ALIGNMENT

- INTEGRATED STRATEGY & PERFORMANCE MANAGEMENT SYSTEM

HISTORY

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

SELECT CLIENTELE

GLOBAL REACH

Lean Six Sigma

Lean Management

BPMS Solutions

ISO/ISMS/EMS/OHSAS

Process SimulationDaily Work Management

Project Management

Design for Six Sigma (DFSS)

Performance Management

IT & ITES Support

BASKET OF OFFERING

Thank You!

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