in pursuit of excellence opportunities for chartered accountants · 20-04-2011 · • ramakrishna...
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In Pursuit of Excellence
Opportunities for Chartered
Accountants
R Venkatakrishnan FCA DISA(ICA)
Chennai
rvk@rvkassociates.com
+914424618778/24618740April 20th 2011
August 20th 2008 R Venkatakrishnan FCA DISA(ICA)
CA – A Different Perspective
• Increased range of services
• Facilitating in Business Excellence
• It is not “Technical”
• Learn to wear different hats
April 20th 2011 R Venkatakrishnan FCA DISA(ICA)
• Learn to wear different hats
• We do not have to look at as an either or!
– CFO role now is more strategic
• Become a sounding board
• Be part of the solution
– Which means that you cannot be part of the problem!
Opportunities & Challenges
• Need for enhanced corporate performance
– Challenging times
– Need for greater efficiencies
• Resource crunch – not just financial
R Venkatakrishnan FCA DISA(ICA)
• Resource crunch – not just financial
• Facilitation of corporate turnarounds
• Banking sector requirements
– Credit evaluation
– Credit Rating – Basel II norms
What is Business Excellence
• Results that delight stakeholders
• It is all about management of performance
• Process & practice – to focus thought and action
R Venkatakrishnan FCA DISA(ICA)
– to focus thought and action
– systematic and structured
– enhanced increased performance.
• Process of continuous improvements– corrective actions prevent recurrence
– preventive actions prevent occurrence
Approach to Business Excellence
• Understand the key business factors
• Understand competitive environment
– Understand relative position
– Understand competitor position
R Venkatakrishnan FCA DISA(ICA)
– Understand competitor position
• Understand strategic challenges
– Business, operational & human resources
• Obtain industry and competitor data
Core Values of Business
Excellence
• Visionary leadership
• Customer-driven
excellence
• Organisational &
• Focus on the future
• Managing for
Innovation
• Management by fact
R Venkatakrishnan FCA DISA(ICA)
• Organisational &
personal learning
• Continuous learning
• Valuing employees &
partners
• Agility
• Management by fact
• Social responsibility
• Focus on results and
creating value
• Systems perspective
Visionary Leadership
• Setting directions for the organisation
• Create customer focus
• Establish strong value systems
• Set stretch goals – high expectations
R Venkatakrishnan FCA DISA(ICA)
• Communication– Occupy the mind space
• Facilitate strategies, systems and methods
• Developing. Coaching & mentoring
• Succession planning
Customer Driven Excellence
• Organisation is judged by its customers
• Acquisition, retention, growing – Loyalty
• Customer driven excellence to address– Current requirements
– Future desires & market place potential
R Venkatakrishnan FCA DISA(ICA)
– Future desires & market place potential
• Build relationships not transactional
• Learn to listen to the “Voice of Customer”
“If you don’t take care of your customers“If you don’t take care of your customers
your competitors will”your competitors will”
Organisational & Personal Learning
• Knowledge share & dissemination
• Continuous improvement
• Change management
• Learning is part of daily work
R Venkatakrishnan FCA DISA(ICA)
• Analyses of data
MathematicallyMathematically
Learning > ChangeLearning > Change
Valuing Employees & Partners
• The strength of the chain is determined by the weakest link.
• Policies & strategies to address complete life cycle
R Venkatakrishnan FCA DISA(ICA)
life cycle– From womb to tomb
• Acquiring, retaining & sustaining talent
• Vendor development– Treat them as partners
• Quality circles and kaizen groups
Agility
• Capability to adapt to changes
– Rapidly
– Cost effectiveness
– Above all take advantage of it
R Venkatakrishnan FCA DISA(ICA)
– Above all take advantage of it
• Agile organisations sustain competitive & volatile industry
• Standardisation & Flexibility
– Contradiction to deal with
Focus on the Future
• Ability to handle disruptive technologies
• Short & long term perspectives
• Strive for market leadership
• Long term commitment to stakeholders
R Venkatakrishnan FCA DISA(ICA)
• Long term commitment to stakeholders
• Leadership development
• Succession planning
Managing for Innovation
• “Everything that can be invented has been invented.” Charles H. Duell, Commissioner, U.S. Office of Patents, 1899
• Innovation is not the same as RESEARCH
• A key element of managerial excellence
R Venkatakrishnan FCA DISA(ICA)
• A key element of managerial excellence
• New ways of funding is also innovation
If you change the way you look at things, the things you look at change!
Innovation – Various Types
• Finance
– Business Model
– Networking
• Offering
– Product performance
– Product system
– Service
• Process
– Enabling process
– Core process
– Service
• Delivery
– Channel
– Brand
– Customer Experience
R Venkatakrishnan FCA DISA(ICA)
Some Guidelines• Don’t be afraid to take more risk and reward failure. Encourage risk taking
• Your company’s energy should be focused on long term innovation which
are game-changing in nature rather than on short term incremental
innovation
• Track the path of your innovation carefully and maintain meticulous records
• The point of innovation is to improve customer experience. Focus on that
rather than only on tech
• If you don’t find a solution for a problem, instead of quitting, find an alternate • If you don’t find a solution for a problem, instead of quitting, find an alternate
way to look at it
• Ideas can come from anywhere. Keep your eyes and ears open to ideas
both from inside and outside
• Don’t be bogged down by failure
• Remember, sometimes innovation happens when you have very limited
time
• Foster a culture of innovation in your company by offering incentives
• Get the right people at the right place and let them interact and collaborate
R Venkatakrishnan FCA DISA(ICA)
Management by Fact
• You cannot manage what you don’t measure
• In God we trust - rest data!
• Ensure integrity of data
R Venkatakrishnan FCA DISA(ICA)
• Ensure integrity of data
• For an accountant data is gold mine
• Need for balance in measurements
• Use both lag and lead indicators
Social Responsibility
• Never has so much attention bestowed on a item
• Triple bottom line approach
– Economic = Profit
R Venkatakrishnan FCA DISA(ICA)
– Economic = Profit
– Environmental = Planet
– Societal = People
• Increasing audits of Corporate Social Responsibility
Focus on Results &
Creating Value
• Focus on key results– Operation was a success but patient died
• Use results to create value for stakeholders
R Venkatakrishnan FCA DISA(ICA)
stakeholders
• Focus on creating loyalty
• Plan to manage stakeholder conflicts
• Financial outcomes– Use both lag & lead indicators
– Slice and dice your results
Systems Perspective
• Management of inter-related processes
– Identifying
– Understanding
– Managing
R Venkatakrishnan FCA DISA(ICA)
– Managing
• Most difficult area in a organsition
BUSINESS EXCELLENCE
MODELS IN INDIA
• CII-EXIM Award based on EFQM
• Ramakrishna Bajaj National Quality Award based on Malcolm Balridge
R Venkatakrishnan FCA DISA(ICA)
based on Malcolm Balridge
• Rajiv Gandhi National Quality Award
2
Strategic
Planning
5
Human Resource
Focus
1 7
Global Business Excellence Models
Malcom Balridge
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS AND CHALLENGES
August 20th 2008 R Venkatakrishnan FCA DISA(ICA)
3
Customer and
Market Focus
6
Process
Management
1
Leadership
7
Business
Results
4
Information and Analysis and Knowledge Management
People ResultsPeople
Enablers Results
The EFQM Excellence Model
R Venkatakrishnan FCA DISA(ICA)
Leadership ProcessesKey
Performance
Results
Society Results
Customer Results
Partnerships and
Resources
Policy & Strategy
I n n o v a t i o n and L e a r n i n g
Evaluation Criteria & Scoring Model
S.No Criteria Malcolm
Balridge1 Leadership 120
2 Strategic Planning 85
3 Customer Focus 85
August 20th 2008 R Venkatakrishnan FCA DISA(ICA)
3 Customer Focus 85
4 Measurement, Analysis & Knowledge
Management
90
5 Workforce Focus 85
6 Process Management 85
7 Results 450
Total 1000
Evaluation Criteria & Scoring Model
S.No Criteria EFQM1 Leadership 100
2 Policy & Strategic 80
3 People 90
4 Partnership & Resources 90
R Venkatakrishnan FCA DISA(ICA)
4 Partnership & Resources 90
5 Processes 140
6 People; Customer & Society Results 350
7 Key Performance Results 150
Total 1000
Convergence
Core Values Criteria Results
R Venkatakrishnan FCA DISA(ICA)
How Do We Do It?!
• Identify the key business factors
• Use the RADAR approach– Results; Approach; Deployment; Assessment &
Review
• Need to Collaborate
R Venkatakrishnan FCA DISA(ICA)
• Need to Collaborate– Networking the key
– Multi-disciplinary teams
– Geographical spread
• New Age Innovation N=1; R=G– Insurance companies have started
Business Excellence –
An On-Going Process
• 50% of the companies that Tom Peters featured in his book "Search of Excellence" are not there today!
• Follow the Deming’s PDCA Cycle
R Venkatakrishnan FCA DISA(ICA)
• Follow the Deming’s PDCA Cycle
– Plan; Do; Check; Act
• Business cycles is all about B2B
– Back to Basics
To conclude
In a world of futures and options our future is not an option!
So
R Venkatakrishnan FCA DISA(ICA)
Let us take a call and put our best foot forward
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