2012 INDUSTRY ADVISORY REPORT ON                                  OPERATIONAL EXCELLENCE                                  ...
Table of ContentsForeword ...................................................................................................
FOREWORD          Welcome to the Industry Advisory Report on ‘Operational Excellence’. This report captures the          s...
LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 5 | ©2012 LASSIB Society, All Rights Reserv...
EXECUTIVE SUMMARYA decade ago the top priority list of a CXO used to be a very simple, crisp list including areas likeenha...
From now to the new world              In the long run, enterprises should build an organizational culture where, irrespec...
OPERATIONAL EXCELLENCE PANELPanel Chair                             Mr. Arun Hariharan, President, Quality & Knowledge    ...
Ms. Uma Seshadri, Deputy Head, Quality (SAP BU),                             L&T InfotechPanel Chief Editor               ...
1. CURRENT STATE OF OPERATIONAL EXCELLENCE IN INDUSTRYIn thisLASSIB Society | Industry Advisory Report on Operational Exce...
LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 11 | ©2012 LASSIB Society, All Rights Reser...
2. INDUSTRY CHALLENGES, INFLUENCERS AND INTERVENTIONS     2.1.        CHALLENGE: CONSTRAIN OF SENIOR MANAGEMENT TO FOCUS O...
2.1.2. KEY INTERVENTIONS THAT NEED TO BE                                                                           -      ...
2.2.       CHALLENGE: ORGANIZATIONAL INERTIA. RESISTANCE TO ADOPTION OF           TECHNOLOGY & INDUSTRY BEST PRACTICES    ...
2.2.2.     KEY INTERVENTIONS THAT NEED TO BE                  PLANNED TO ADDRESS THESE CHALLENGELASSIB Society | Industry ...
3. CRAFTING A SUSTAINABLE FUTURE     3.1. ADAPT TO CHANGEAny change is painful in any organization, it brings with it, its...
4. FROM NOW TO THE NEW WORLD     4.1. OPERATIONAL EXCELLENCE WILL BE THE RESPONSIBILITY OF EVERYBODYIn a globalized world,...
5. ABOUT LASSIB SOCIETYLASSIB Society is a not-for-profit organization focussed on ‘Nurturing Next Generation Governance G...
7. LASSIB CXO ROUND TABLE CONFERENCE SUPPORTERSThe Round Table Conferences would not have been possible without the suppor...
9. HOW YOU CAN LEVERAGE AND SUPPORT LASSIB SOCIETYAlthough LASSIB Society is a not for profit organization, it does not be...
THOUGHTS FROM THE PANEL"I would like to compliment the effort that has gone into creating this report. The most important ...
Headquarter Address:#5-62/9/22-B, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India. PIN: 500007Offic...
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This report captures the synopsis of the discussion and analysis held by the panel on Operational Excellence at the LASSIB CXO Round Table Conference held in Mumbai on 14th July 2012. In this report we focus on the central views discussed towards state of Operational excellence and continuous improvement initiatives that organizations are working towards, or need to think about in order to excel.

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Lassib 2012 industry advisory report on operational excellence preview

  1. 1. 2012 INDUSTRY ADVISORY REPORT ON OPERATIONAL EXCELLENCE ©2012 LASSIB Society, All Rights Reserved THIS REPORT IS MEANT FOR DISTRIBUTION TOPROFESSIONAL AND STUDENT MEMBERS of VARIOUS BODIES OF LASSIB SOCIETY ONLY. LASSIB MEMBERS ARE AUTHORIZED TO FORWARD THIS REPORT TO OTHER CXO’s WITHIN THEIR NETWORK. ALL OTHER INDIVIDUALS AND ORGANIZATIONS ARE PROHIBITED FROM ACCESSING AND FORWARDING THE REPORT THROUGH ANY MEDIA.TO BECOME A MEMBER OF THE GLOBAL LASSIB FAMILY, REFER: HTTPS://LASSIB.ORG/INDEX.PHP/MEMBERSHIP/MEMBERSHIP-BENEFITS HTTPS://LASSIB.ORG/INDEX.PHP/LASSIB-SHOPLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 2 | ©2012 LASSIB Society, All Rights Reserved.
  2. 2. Table of ContentsForeword ................................................................................................................................................................ 4Executive Summary................................................................................................................................................ 6Operational Excellence Panel ................................................................................................................................ 81. Current state of operational excellence in industry .............................................................................. 102. Industry Challenges, Influencers and Interventions .............................................................................. 12 2.1. Challenge: Constrain of senior management to focus on strategy and vision, due to operational challenges ......................................................................................................................................................... 12 2.2. Challenge: Organizational inertia. Resistance to Adoption of technology & industry best practices 143. Crafting a sustainable future .................................................................................................................. 16 3.1. Adapt to Change.................................................................................................................................. 16 3.2. Compete in a global market place ...................................................................................................... 16 3.3. Adherence to rules of land and regulatory compliance..................................................................... 164. From Now to the new world .................................................................................................................. 17 4.1. Operational Excellence will be the responsibility of everybody ..................................................... 17 4.2. Greater emphasis ON FIRST time right ............................................................................................... 17 4.3. Be responsible to the community ...................................................................................................... 175. About LASSIB Society .............................................................................................................................. 186. About LASSIB CXO Round Table Conferences ........................................................................................ 187. LASSIB CXO Round Table Conference Supporters.................................................................................. 198. Other Contributors to the LASSIB CXO Round Table Conference ......................................................... 199. How you can leverage and support LASSIB Society ............................................................................... 20 COPYRIGHT ©2012 LASSIB Society, All Rights Reserved. No part of this document may be modified, deleted, or expanded by any process or means without prior written permission from LASSIB Society.T HIS REPORT HAS BEEN MADE POSSIBLE WITH THE SUPPORT OF LASSIB S OCIETY PARTNERS .LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 3 | ©2012 LASSIB Society, All Rights Reserved.
  3. 3. FOREWORD Welcome to the Industry Advisory Report on ‘Operational Excellence’. This report captures the synopsis of the discussion and analysis held by the panel on Operational Excellence at the LASSIB CXO th Round Table Conference held in Mumbai on 14 July 2012. The conference had six focused themes driven towards achieving Organizational Excellence. These include: 1. Delivering Customer Value 2. Employee Satisfaction & Engagement 3. Improving Profitability 4. Learning and Development 5. Operational Excellence 6. Revenue Growth All the above, including Operational excellence are key to achieving excellence within any organization, be it a part of any business domain, geography or size. In this report we focus on the central views discussed towards state of Operational excellence and continuous improvement initiatives that organizations are working towards, or need to think about in order to excel. The exciting discussions and perspectives brought forward by a diversified set of CXOs indicate the current state of operational excellence practices in the industry, along with the challenges, opportunities for improvement and expected trends in the coming years. As economies and industries across the globe face difficult times, these findings serve a critical purpose. The point of views and suggestions in this report are generic and thought provoking in nature. This has been purposely done without providing references to specific industries as these can be applied to any organization striving for operational excellence. These findings should be used not only by functional leaders to gauge their readiness for change, but also by CXOs across the organizations to define how to best structure and align their continuous improvement initiatives to match the overall goals and vision of the organization. Please note that this report is the consolidation of the point of views of the panel in their individual capacity and is not endorsed by their respective organizations. This report has been made possible by seamless support of the Panel Chair, Panel Chief Editor, Panel Members, the LASSIB team and 9Pixels as the media partner for LASSIB. We hope you find the report valuable and helpful when defining the direction of your improvement initiatives. Arun Hariharan (Mr. Arun Hariharan) (Mr. Radhakrishnan Balagopal) Panel Chair – Operational Excellence Panel, Chief Editor – Operational Excellence Panel, President, Quality and KM Lead Consultant Co-Founder – LASSIB Society Reliance CapitalLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 4 | ©2012 LASSIB Society, All Rights Reserved.
  4. 4. LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 5 | ©2012 LASSIB Society, All Rights Reserved.
  5. 5. EXECUTIVE SUMMARYA decade ago the top priority list of a CXO used to be a very simple, crisp list including areas likeenhancing core competencies, moving work to low cost destinations, capturing market share inemerging markets and so on. Today, post Lehman and the global credit crunch it is a new era, an era ofblack Swans and rapid technology obsolescence. These dynamic market developments have proved thatthey are capable of turning tables for market leaders by eroding their customer base and market share,sometimes in less than one quarter of a year. Organizations across the globe are facing uniquechallenges which are not always easy to comprehend and are influenced by many uncontrollablevariables. These challenges could range from currency fluctuations, sovereign debt crisis to globalterrorism. The business confidence is low and every penny spent is being questioned. In this new worldwhere raising capital for expansion is extremely difficult and consistent cash flows are a key priority,operational excellence in core business processes seems to be the focus areas for each CXO.Given the above state of affairs, the challenges that organizations are grappling with include:  Achieving Operational Excellence is viewed as the responsibility of senior management and quality team only, and not a responsibility of everyone  Lack of a consistent long term, common vision for the entire enterprise  Obtaining Continuous Customer feedback as a vital input to improve products and services  Innovation and breakthrough improvements, as enterprises can no longer sustain themselves through incremental improvements  Enterprises are not investing in their biggest asset – People, in their drive to improve operational efficienciesSome of the interventions required to address these key challenges include:  Enterprises have to think global and long term. It is not good enough to be better than your competitor(s) in your backyard. In this globalized world, enterprises need to constantly identify early, changing customer behaviors, analyze patterns and trends, and innovate to create a niche for themselves. They need to build an organizational culture which will not only adapt to change but welcome it. They need to assess their organization’s processes against globally accepted performance measures and models like Malcolm Baldrige National Quality Award, European Foundation of Quality Management (EFQM) and achieve breakthrough improvement by adopting Lean Six Sigma.  The need of the hour is not about being good enough, in what is currently being done in their day to day operations and improving incrementally. That is a must for any organization to stay alive. Enterprises have to constantly benchmark with competition across the globe. This benchmarking should enable the organizations to innovate and achieve breakthrough improvements.  Enterprises need to act responsibly to communities and strictly follow the rule of the land. Compliance risks like non adherence to regulations and safety measures, can catapult any market leader out of trade.LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 6 | ©2012 LASSIB Society, All Rights Reserved.
  6. 6. From now to the new world In the long run, enterprises should build an organizational culture where, irrespective of their functions, Operational Excellence becomes everybody’s responsibility and each employee strives towards adding value to business and end customer. The life cycle of a product or service would need to be shortened keeping in mind that time to market would become the key differentiator for all organizations. In order to achieve this, enterprises would have to invest heavily in processes which ensure First Time Right (FTR) and First to Market (FTM). In tomorrow’s world, enterprises will be valued not only based only on their business potential and top and bottom-line growth, but also based on how responsible they are to the community in which they operate, to mother nature, and ultimately to their end customer(s).LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 7 | ©2012 LASSIB Society, All Rights Reserved.
  7. 7. OPERATIONAL EXCELLENCE PANELPanel Chair Mr. Arun Hariharan, President, Quality & Knowledge Management, Reliance CapitalPanel Members Mr. M K Mehta Senior General Manager, Mining Support, ACC Ltd Mr. Haresh Hiranandani, Vice President, Service Quality, Kotak Mahindra Mr. Prateek Kumar, DGM, Mining Support, ACC Ltd Mr. Rajesh Kumar Dube, DGM – PEX, Cognizant Life Sciences Mr. Sameer Inamdar, National Head - Quality & Process Excellence, Bajaj Finserv – LendingLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 8 | ©2012 LASSIB Society, All Rights Reserved.
  8. 8. Ms. Uma Seshadri, Deputy Head, Quality (SAP BU), L&T InfotechPanel Chief Editor Mr. Radhakrishnan Balagopal, Lead Consultant, Capgemini Panel in Deep Discussion Panel on StageLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 9 | ©2012 LASSIB Society, All Rights Reserved.
  9. 9. 1. CURRENT STATE OF OPERATIONAL EXCELLENCE IN INDUSTRYIn thisLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 10 | ©2012 LASSIB Society, All Rights Reserved.
  10. 10. LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 11 | ©2012 LASSIB Society, All Rights Reserved.
  11. 11. 2. INDUSTRY CHALLENGES, INFLUENCERS AND INTERVENTIONS 2.1. CHALLENGE: CONSTRAIN OF SENIOR MANAGEMENT TO FOCUS ON STRATEGY AND VISION, DUE TO OPERATIONAL CHALLENGES 2.1.1. COMMON INFLUENCERS BEHIND THESE CHALLENGES AS OBSERVED IN THE INDUSTRYLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 12 | ©2012 LASSIB Society, All Rights Reserved.
  12. 12. 2.1.2. KEY INTERVENTIONS THAT NEED TO BE - PLANNED TO ADDRESS THESE CHALLENGELASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 13 | ©2012 LASSIB Society, All Rights Reserved.
  13. 13. 2.2. CHALLENGE: ORGANIZATIONAL INERTIA. RESISTANCE TO ADOPTION OF TECHNOLOGY & INDUSTRY BEST PRACTICES 2.2.1. COMMON INFLUENCERS BEHIND THESE CHALLENGES AS OBSERVED IN THE INDUSTRYRiLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 14 | ©2012 LASSIB Society, All Rights Reserved.
  14. 14. 2.2.2. KEY INTERVENTIONS THAT NEED TO BE PLANNED TO ADDRESS THESE CHALLENGELASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 15 | ©2012 LASSIB Society, All Rights Reserved.
  15. 15. 3. CRAFTING A SUSTAINABLE FUTURE 3.1. ADAPT TO CHANGEAny change is painful in any organization, it brings with it, itsis also essential to manage the change. 3.2. COMPETE IN A GLOBAL MARKET PLACEThe whole world is evolving to become a single market place. 3.3. ADHERENCE TO RULES OF LAND AND REGULATORY COMPLIANCEregulations and working with the Government collaboratively.LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 16 | ©2012 LASSIB Society, All Rights Reserved.
  16. 16. 4. FROM NOW TO THE NEW WORLD 4.1. OPERATIONAL EXCELLENCE WILL BE THE RESPONSIBILITY OF EVERYBODYIn a globalized world, the competition will be so high that operational excellence and 4.2. GREATER EMPHASIS ON FIRST TIME RIGHTThe life cycle of a product or service would have shortened to such an extent that, 4.3. BE RESPONSIBLE TO THE COMMUNITYAll organizations have a commitment towards the community and the environmentLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 17 | ©2012 LASSIB Society, All Rights Reserved.
  17. 17. 5. ABOUT LASSIB SOCIETYLASSIB Society is a not-for-profit organization focussed on ‘Nurturing Next Generation Governance Globally’.LASSIB Society’s mission is to create and provide the worlds most useful ‘Governance Management’ resourcecentre and a set of certification programs, available for Individuals, Organizations and Governments at thelowest cost.Based on the principles on Gandhian Engineering, we deliver cutting edge industry research and enhancedvalue to the community at large.LASSIB Society organizes multiple events, enabling face-to-face interactions and virtual interactions among theglobal community.6. ABOUT LASSIB CXO ROUND TABLE CONFERENCESLASSIB Society hosts a series of high profile; power packed, peer-to-peer, invitation-only Round TableConferences for C-Level executives with a focus on ‘Nurturing Next Generation Governance Globally’.These conferences are a rare opportunity for CXOs to network with fellow CXO’s, share their experiences,learn from other’s successes and best practices. These conferences consist of a predefined set of themeswhich are most relevant to the industry, in that specific location. The CXO panel for each theme is engaged in abrainstorming session to understand the current state of the industry, the challenges, best practices andindustry outlook for the future. All inputs from these sessions are captured in the Industry Advisory Reports(IARs) like this one.These IARs are a valuable resource for the industry at large, and serve to provide key insights that can be usedby industry leaders to shape the strategy for their organizations.Please refer to http://www.lassib.org for details of all events of LASSIB Society.LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 18 | ©2012 LASSIB Society, All Rights Reserved.
  18. 18. 7. LASSIB CXO ROUND TABLE CONFERENCE SUPPORTERSThe Round Table Conferences would not have been possible without the support of the following: Minitab remains the worlds leading software for teaching statistics. More students worldwide have learned statistics using Minitab than any other software. Minitab also is the software used most often in Six Sigma, the world’s leading quality improvement methodology. Lucid Infotech specializes in collaborative business productivity software. Its latest product, OneSpace, provides a secure corporate workspace for project, process and content management in an easy-to-use UI for quickest user adoption. 9 PIXELS Entertainment is an Integrated Professional Media and Entertainment (M&E) company which creates and produces large scale innovative and profitable media concepts across all areas of entertainment and brings in over a decade of industry experience in the areas of Film and TV. Their goal is to maximize clients growth potential by providing specialized marketing services to expand their brand. They provide clients the opportunity to reduce their to- do list by enlisting 9Pixels to handle specific areas of expertise.8. OTHER CONTRIBUTORS TO THE LASSIB CXO ROUND TABLE CONFERENCERole Full Name Designation OrganizationIAR Editing Ms. Shilpa Kota Secretary LASSIB SocietyIAR Reviewer Mr. Pavan Kota Executive President LASSIB SocietyIAR Design and Launch Mr. Srikanth Kodavanti Chief Executive Officer 9 PixelsConference Lead Mr. Rana Pratap Singh Executive Vice President LASSIB SocietyFacilitatorConference Coordinator Mr. Ved Prakash Singh Coordinator LASSIB SocietyConference Coordinator Mr. Varun Khare Coordinator LASSIB SocietyLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 19 | ©2012 LASSIB Society, All Rights Reserved.
  19. 19. 9. HOW YOU CAN LEVERAGE AND SUPPORT LASSIB SOCIETYAlthough LASSIB Society is a not for profit organization, it does not believe in raising funds through charitablemeans, without providing direct value to the contributor. There are many different ways in whichorganizations, institutions, governments and individuals across the globe are working with LASSIB Society todeliver value to themselves and their customers. LASSIB Society is proud to be associated with all of them indeveloping and delivering cutting edge solutions that have not only delivered quantified business value tothem but also added thought leadership to the industry at large. Below are some ways in which you canleverage and support LASSIB Society.Leverage LASSIB for Benefits to you Support to LASSIB Societyyour initiativesBecome an  Access complete knowledge base including Funds collected throughIndividual or training materials, best practices, case studies, membership fees are used toOrganization videos and webinars from LASSIB Society maintain and grow LASSIBMember of LASSIB.  Network, learn and contribute to the fastest knowledge base. growing community of specialist, senior leadersVisit from the industryhttps://lassib.org/ind  Get latest updates, insights and research fromex.php/membership the industry delivered to your Inboxto know more aboutLASSIB membershipoptions.Leverage Training  Get trained from the leading experts from the Training and certification feesand Certification in industry who bring together years of experience charged by LASSIB Society arethemes of and best in class training skills, tools and the lowest in the Industry inOrganization technologies order to ensure these keyExcellence.  Acquire not only knowledge but skills to components are available implement the knowledge in real life scenarios within reach to masses. The  Attain internationally respected certifications fees charged helps cover the thereby adding value to your organization and cost incurred by LASSIB Society yourself for hiring trainers and issuing  Join the growing panel of Accredited Training certificates. Providers (ATP) and Accredited Test Centers (ATC) of LASSIB Society to deliver value within your organization.Consult with LASSIB Solve organization problems, create strategy, deliver Consulting fees derived byexperts to deliver customer value through best practices and proven LASSIB Society aids LASSIB tobusiness and tools & techniques fund research, host events andcustomer value provide free consulting services to organizations which cannot afford to pay yet.Participate in LASSIB Network, brainstorm, and learn from industry Sponsorship costs andEvents leaders, face to face, over exciting discussions delegate fees assist LASSIB in conducting these events and spreading the awareness within the community.Participate and  Understand the trends in the industry By participating in buildingleverage Industry  Identify common challenges and best practices these reports, you provide theResearch  Hear from experts on future forecasts opportunity to LASSIB to share your knowledge with the rest of the industry.  Please refer to http://www.lassib.org for details on LASSIB Society or  Send a note to contact@lassib.org to get connected to a LASSIB consultant or  Call +91-9246185187 (India) to speak to a LASSIB Evangelist directly.LASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 20 | ©2012 LASSIB Society, All Rights Reserved.
  20. 20. THOUGHTS FROM THE PANEL"I would like to compliment the effort that has gone into creating this report. The most important aspect of thisreport to my mind is that it condenses the insights of professionals with years of experience in the field fromdiverse industries. Personally, I found being part of this panel to be a valuable learning experience." Mr. Arun Hariharan (Panel Chair) President, Quality & Knowledge Management, Reliance Capital“The industry advisor reports (IAR) are a humble endeavor by LASSIB to bring together the industry titans tobrainstorm on the current challenges and propose long term solutions for addressing these challenges. The IARon operational excellence is one among them. The industry advisor report on operational excellence gives asynopsis of what CXO’s across industries shared about the current and future operational challenges andantidote for addressing them. This report is a testimony of what CXO’s felt about how organizations andemployees perceive operational excellence and how nimble they are to acclimatize to the changingenvironments and customer needs. It also reiterates the fact that there is no quick pill for excellence and thenecessity to think, invest and act on long term goals. The report concludes by their view points on howoperational excellence will be perceived in the new world.” Mr. Radhakrishnan Balagopal (Panel Chief Editor) Lead Consultant, CapgeminiLASSIB Society | Industry Advisory Report on Operational Excellence 2012Page | 21 | ©2012 LASSIB Society, All Rights Reserved.
  21. 21. Headquarter Address:#5-62/9/22-B, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India. PIN: 500007Office: +91-40-40045614 | India Fax: +91-40-40045615 | Toll Free Number: 1-800-425-1388Email: contact@lassib.org | Website: https://www.lassib.org/

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