6 MANTRAS FOR GLOBAL EXCELLENCE

1. 6 MANTRAS FOR
GLOBAL EXCELLENCE

2. 6 Mantras for Global Excellence !
AGENDA 14.Sep.19
Session 1: 10.00
am to 11.45 am!
- Introduction &
Context Setting!
- Integrated Business
management!
- Leadership System!
Tea Break – 11.45 pm
to 12.00 Noon
Session 3:
02.30 pm to
04.00 pm!
- Operations!
- Finance
Tea Break –
04.00 pm to
4:15 pm
!
Session 2: 12.00
pm to 1.30 pm!
- Strategy !
- Customer & Market!
!
Lunch Break – 1.30
pm to 02.30pm
!
Session 4: 4.15
pm to 05.00
pm!
- Human Asset !
- Q&A!
!
15.Sep.19: Mentoring on Key live issues for each participant (60 mins)

3. 2.
STRATEGIC
PLANNING
1.
LEADERSHIP
3.
CUSTOMER &
MARKET FOCUS
5.
HUMAN ASSET
FOCUS
6.
OPERATION
7.
FINANCE
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS & CHALLENGES
4.
MEASUREMENT, ANALYSIS & KNOWLEDGE MANAGEMENT
Source: Baldrige National Quality Program

4. Why Excellence Framework
• Conducting organizational self-assessments
• Improve organizational performance practices, capabilities, and
results
• Working tool for understanding and managing performance
• Guiding organizational planning and opportunities for learning
• Delivery of ever-improving value to Customers and stakeholders,
• Organizational sustainability
• Organizational effectiveness

5. 6 MANTRAS FOR GLOBAL BUSINESS EXCELLENCE
2.Operations
(Stay Nimble)
1. Strategy
(Strategize & Grow)
3. Finance
(Analyse & Prosper)
4. Leadership
(Influence & Impact )
5.Customer & Market
(Value the
Relationship)
6. Human Asset
(People as
differentiators /creators)

6. 6 MANTRAS FOR
GLOBAL BUSINESS
EXCELLENCE
• Strategy – Strategize and grow
• Operations – Stay Nimble
• Finance – Analyse & Prosper
• Leadership – Influence & Impact
• Customer & Market – Value the
Relationship
• Human Asset – People as differentiators /
Creators
Leadership
(Influence & Impact)

7. LEADERSHIP
(Influence & Impact)

8. How do your senior leaders lead the organization?
!
a. VISION and VALUES
!
b. Communication and Organizational
Performance
!
c. Governance and Social Responsibilities
LEADERSHIP SYSTEM

9. • Evolving and Communicating VMV to all the
stake holders
• Leadership commitment and Role Modelling
of Vision and Values
• Role of Senior Leaders in Promoting
Environment (Improvement, Learning,
Excellence, Ethics, Legal)
• Building Sustainable Organization (Long-term
Vs. Short-term)
• Succession Planning for key roles
• Development of Future Leaders
VISION & VALUES

10. Communication & Organizational Performance
Leadership involvement in:
• Organizational Communication
• Employee Engagement
• Encouraging Frank and Two way
communication

11. Governance System -
• Accountability of Management
Action’s
• Transparency in operations
Performance evaluation-
• Senior Leader’s
• Governance Board
Legal and Ethical Behavior of
Senior Leaders
Support to Key Communities
Governance & Social Responsibility

13. Case Study
Background
A business unit growing to more
than double headcount from 200
to 500+ , a very high number
of external hires at senior
positions from various
organizations, higher
expectations from stakeholders
for delivery , cost & innovation
Change
• Old employees felt lack of growth
• New / old employee divide
• Integration of new leaders was
difficult , each one bringing own
way of working
• Top down way of management
proving ineffective (e.g. CEO will
interview every new hire )

14. Case Study (continued)
Action Taken
• Vision , mission , strategy creation
process was set up .
• A series of workshops with the extended
team resulted in shared creation of
organization vision and strategy .
• Feedback on expectations from
Management team
• Job postings were published so
employees could apply for higher roles
creating equal opportunities .
• Quarterly town hall meetings
Results
An integrated company culture was
established , old employees felt they
could also grow with the company
( transparency was appreciated ) new
employees felt included and valued ,
Management Team role was played
out effectively , Stakeholders
appreciated speed and effectiveness
of scale -up

15. 6 MANTRAS FOR
GLOBAL BUSINESS
EXCELLENCE
• Operations – Stay Nimble
• Finance – Analyse & Prosper
• Leadership – Influence & Impact
• Customer & Market – Value the
Relationship
• Human Asset – People as differentiators /
Creators
Strategy
(Strategize & Grow)

16. STRATEGY
(Strategize & Grow)

17. What is Strategy?
• Integrated set of unique
actions
• The Unique allocation of
resources to create a position
of advantage vs. competitors
• Centrality of choice
• Impacts firm’s competitive
advantage
• Overarching theme that drives
actions.

18. Strategy Mantra: Key Takeaways
• A Different Way To View Your Resources,
Capabilities and Opportunities In The Context Of
Customer Needs, Competition and Operating
Environment
• Insight Into Strategy Development Process That
Will Give Your Company An Edge In Your
Markets / Customers.
• An Integrated View of The Company that Senior
Management Can Use To Build A High Performing
Team And Achieve Targeted Result.

19. 6 MANTRAS FOR
GLOBAL BUSINESS
EXCELLENCE
• Strategy – Strategize and grow
• Operations – Stay Nimble
• Finance – Analyse & Prosper
• Leadership – Influence & Impact
• Human Asset – People as differentiators /
Creators
Customer & Market
(Value the Relationship)

20. CUSTOMER & MARKET
(Value the Relationship)

21. SME Business Challenges – Customer & Market
Competition from
unorganized sector
leading to impact
on Profitability
Stagnated
Revenue
No Strategy
for Customer
retention &
development
Less focus on
Customer
Relationship
Management
Over dependency
on few customers
for business
Less focus on
market &
Competition
mapping
Low
entry
barriers

22. Strategy for
Customer Retention &
Development (KAM, EMS & OLA)
!
• Key Account Management (KAM)
• Enquiry Management System
(EMS)
• Order Loss Analysis (OLA)
!
Customer Relationship Management
(CRM)
Customer & Market

23. KAM: Content & Concept
Content
KAM is an approach which includes
developing:
• Long Term Relationship with
• Strategic Customer whose
• Need you understand in depth &
• For whom you develop a special
offer
• With a differential advantage
• Over the offers of competition
• Thus you get Width & Depth in
your market share
• Have a Happy satisfied customer
base
• 80 : 20 (Pareto Principle)
• 20% business must be from
NEW CUSTOMER
• Width & Depth in accounts to be
focused for market share
• 50% business from repeat
customer accounts
• 30% from New products / services
• 90% + on Customer Sat Levels in
our Key Account
!
Concept

24. Market Conditions
• A downturn results in less business
from current accounts
• New customers is hard to get in a
falling economy
Disruptive Competition
• Uber / Ola vs. Kalli Peelee
• Jio vs. Airtel
Market Share
• Depth in an account – wallet share
increase from the customer to your
products
• Width of key accounts – increase
your accounts in a territory &
segregation from Small & Medium
accounts / National accts / Global
accounts / Government accounts
Why a need for KAM?
A company biggest assets are its
PEOPLE & CUSTOMER – without either
there will be no company

25. A customer exchanges his money for
two solid rewards:
!
• When he finds a “solution” to his
business
!
• When he is “feeling good / glad”
with his purchase (does not feel
cheated)
Why Repeat Business
Thus having a Satisfied 90%
Customer Sat Levels is
critical for achieving
repeat business

26. • To achieve New Accounts we must have a
“Problem solving approach”
!
• Each Key Account buys because they have a
problem – Therefore problems are good & they
require solution
!
• Solutions require product & services = Money
• Solutions must make the customer feel GLAD &
solve his problem.
!
• Solved Problem = Good Relationships
!
• Good relationships = Referrals
!
• Referrals also = New Accounts = New Business
What is required for getting New Customer Base

27. Enquiry Management System (EMS)
Content
EMS is an:
!
✓Organised way of
Receive / Deal / Managing
Sales Enquires – Time saving
& Efficient
!
✓History of enquiries for
future reference
!
✓Prominent source of
business enhancement
➢ Increase closure ratio of
new accounts by 300 %
( normal ration of suspect
to closure is 1:100 ! 3: 100)
!
➢Which Media channel we
must invest for Brand
building & new leads
!
!
Concept

28. Successful Automated Enquiry Management System (EMS)
How do we receive enquiries
• Company website
• Telephone enquiry
• Email
• Referrals
• Direct walk-in
• Participants in Trade
shows
• Buyer : Seller Meet
Data Base Management means:
• Step by Step Sales Process
( SPANCO)
• Next POA
• Result
!
Closure Steps
• Order Logged
• Reasons for Success / Failure
(Product / Price / Feature /
others)
• Decision Differed to another
date
• Which Media to invest
How do we Follow – up

29. ORDER LOSS ANALYSIS (OLA)
You cannot develop plans to increase sales growth
without knowing
why order loss / customer loss is happening

30. ORDER LOSS ANALYSIS:
Content
OLA is an a systematic method
of :
• Discovering why customers
did not buy your product
• Preventing future order loss
& customer base
What changes are required in
product / services / pricing to gain
& retain customers
Concept

31. Pro & cons of OLA (continued)
Competitor selling price will guide us:
In new product or service development
On price discounts
On price changes
• Changing our strategy to retain MVC customers (most valued
customers)
• Evaluate if a territory is having problems & thus focus on changes
in sales team or distributor
• Grouping losses can give us an idea to redesign our product or
produce a new product to regain our competitor advantage
• Competitor information tell us which company is active in which
market with which product & thus we can focus on them.
• Hit rate i.e. % of quotes won : total quotes issued
Benefits' from OLA

32. How to manage OLA?
Analyse your quotation / bid book
periodically on:
• Project is Active
• Project is Dead
• Project is Shelved
• Project lost to Competition
Sales Team must revert as follows:
• Project is Active - % chance of us
getting the order
• Project is Dead – close the file
• Project is Shelved – review it
Quarterly
• Project is lost to Competition –
Ask which model / Selling Price /
reason for loss / make a visit to
the project site to gain
information on how to regain the
customer back.
What good is it to invest in advertisement / hiring sales
personnel / developing new products – if you do not
know why customers go to competition.

33. Customer Relationship Management (CRM)

34. • A Key Account behaviour depends
on his past & present relationship
with us.
!
• A rewarded happy account leads to
a multiplier effect on our TOPLINE,
as he will always come back for
more.
!
• Without a satisfied customer based
& referrals a company does not
exists
Why Satisfied Customer Relationship

35. Customer Relationship Management (CRM)
Content
CRM is a :
• comprehensive strategy &
process of acquiring,
retaining and partnering
customers
• to create superior value for
the company & the customer
• Build a long term &
profitable relationship with
chosen customers
• Getting closer to those
customers at every point of
contact with them
Concept

36. Customer Relationship Management (CRM)
CRM Readiness
Learning about customers
• Knowledge acquisition
• Customer differentiation
CRM Strategy
Customization of marketing
mix
• Product / Services
• Communications
• Channels
• Price
CRM Performance
Measurement
• Process Performance
CRM Post Implementation
Analysis
• Customer Experience
CRM Vision

38. Case Study
Background
• Tier 2 supplier of metal & plastic
cages to bearing industry.
• Turnover was stagnated for last 3
years.
• MD of the company was keen to
double the turnover in 5 years with
sustained profitability.
Situation / Challenges
• Over dependency on few large
customers (80:20)
• No strategy for customer retention
• No focus on new markets,
customers or products.
Actions
• Preparation of Business plan with
roadmap.
• Implementation of marketing &
business development strategies.
• Implementation of EMS, KAM & OLA
• Preparation of CRM Strategy &
implementation.
Result
• Significant growth in turnover
• Conversion of couple of enquiries into
orders through EMS tracker.
• Critical decisions about pricing &
product discontinuation on the basis of
OLA.
• Added 3 new customers through market
exploration : 15% additional business

39. A company lives thru rough &
tough because we focus on :
!
• Internal Assets - People
• External Assets – KAM / EMS /
OLA
• Results - CRM
Wrap up

40. 6 MANTRAS FOR
GLOBAL BUSINESS
EXCELLENCE
• Strategy – Strategize and grow
• Finance – Analyse & Prosper
• Leadership – Influence & Impact
• Customer & Market – Value the
Relationship
• Human Asset – People as differentiators
/Creators
Operations
(Stay Nimble)

41. Operations!
(Stay Nimble)

42. Frequent
Changes in
Production Plan
Rejections / Rework
Not able to supply products
in time to meet customer’s
schedule.
Frequent Break-down
of Machines /
Equipment
Everything is
“URGENT”
Excess Manpower, Low
Productivity
High Manufacturing Cost
Problems

44. Required
In such situations,
is

45. Objective for the
Transformation
Our Objective is to prepare your
operations to meet the
Customer’s requirements through
deploying appropriate
Initiatives / Tools for:
• Enhancing Quality,
• Enhancing Productivity,
• Optimizing Overall Cost, with
“Predictable deliveries”,
• Focus on to Collapse time
between “Order to Cash”
45
Obejective

46. !
• Every business has to face numerous and
different challenges, both external and
internal ones. For instance, speed and the
ability to adapt to changing market
conditions.
• The threat of new competition, rising
customer expectations, expanding markets
are the key drivers of change, and the driving
force behind the ever-increasing need for
Operational Excellence.
• Operational Excellence is the execution of
the business strategy more consistently and
reliably than the competition, with lower
operational risk, lower operating costs, and
increased revenues relative to its competitor.
46
Operational
Excellence

47. We will select appropriate Initiatives / Tools, based on challenges in your
Operations
47
Initiatives / Tools

48. PQCDSM
• Quality!
• Cost!
• Delivery!
• Safety!
• Morale
ZERO BAD!
• Breakdown!
• Accidents !
• Defects
During Implementation, we will identify and monitor appropriate
Performance indicators for enhancing your Operation’s performance.
Performance Indicators

49. Examples of
Implementation

50. Before
KAIZEN
Output per Hour:
12 Units
Transformation : Case Study

51. After
KAIZEN
Output per Hour: Increased
from 12 to 44 Units
377% increase
in Productivity
Transformation : Case
Study

52. Measure Achieved through Typical Results*
Productivity Improvement
Work content measurement and
balancing, Reduction in Waste
30 ~ 40 %
Manpower Optimization
Elimination of non-value adding
work content
15 ~ 20 %
Inventory Reduction
by improving logistics system
(Introduction of Supermarket, water
spider, FIFO, One-piece Flow)
40 ~ 50 %
Quality Built into the
process
Quality improvement through
introduction of Standard Work
Practices
35~40 %
Down-Time Reduction Elimination of root causes 20~30 %
Net effect: Operational cost is reduced substantially and system is
able to respond to customer’s requirements efficiently.
These results will vary, based on the Waste available in the system
Transformation: Typical Results

53. Automotive Foundries Aerospace
Food & Beverage Chemical Health Care
We have successfully transformed operations in various sectors In India and
abroad
Transformation : Industry Sectors

56. Case Study
Background
Operational Improvement in a
leading Indian Conglomerate
• Operating in a monopoly market
• Losses in operations made good
by increasing the selling price
• Buyers ready to accept any level
of Quality as availability was issue
• Marketing & Sales working as
rationing officers
Change
• Liberalization & Globalization
opened gates for Global
companies
• License raj was over
• Customers were introduced to
quality products
• Customers started demanding
quality
• Quality is no longer a order
winning criterion In fact, it is
turned out to be
an order qualifying criterion.

57. Case Study (continued)
Change Initiatives
• Introduction of Business Process re-
engineering
• Implementation of “MOST” for work
measurement
• Introduction of Multi Machine
manning concepts
• Deployment of ISO / TS certifications
• Change in work culture / workmen
participation in Management
• Visual factory concept / Change in
work culture
• Deployment of TPM
• Implementation of improvement
culture
Results
• Productivity gone up by 47 %
• Breakdowns reduced from 1219 per
year to 20
• Set up loss improved by 43%
• Quality defects reduced by 90 %
• Customer complaints reduced by
63 %
• Accidents made zero
• Manufacturing cost reduced by 12
%
• Skills & knowledge of workmen
improved

58. !
A Step towards
Excellence
KAIZEN

59. KAIZEN is based on Japanese business methods,
that uses less of everything - human effort,
capital investment, facilities, inventories and
time - in manufacturing, product development,
parts supply, etc.
!
Focus is on to Collapse time between “Order to
Cash”
Background

60. 60
Transformation Examples: Speed is the essence!
Transformation within one week to 10 Day’s time

61. Over View: Before
KAIZEN
Indica
Microbus
Fiat & Vista
Before
Units of Fiat, Vista, Microbus & Indica are being produced at 4 different
locations with total 17 Operators.

62. Cell Layout: After
KAIZEN
Storage of
large parts
e.g. housing
Small part storage of all
models on racks at either
side of assembly table
Defined location to
parking of fascia
trolleys
Finished parts to
shipping area
After
Space Occupied !
Reduced from 124 to
62 Sq. Meters
Units of Fiat, Vista, Microbus & Indica are now being produced at
a single location with only 6 from 17 Operators.

63. Tangible Benefits

64. 6 MANTRAS FOR
GLOBAL BUSINESS
EXCELLENCE
• Strategy – Strategize and grow
• Operations – Stay Nimble
• Leadership – Influence & Impact
• Customer & Market – Value the
Relationship
• Human Asset – People as differentiators /
Creators
Finance !
(Analyse & Prosper)

65. FINANCE
(Analyse & Prosper)

66. Mantra: Analyse & Prosper
• Profit management
• Balance sheet management
• Analysis of profitability
• Budgeting
• Data Management & MIS
• Lean working capital
• Cash flow management
• How to do more with less

67. Teaser 1
• Plan - turnover & fixed cost
and profit will go up by 50%
after expansion phase.
• Actually, it was seen after
year end that Profit came
down to zero despite increase
of 50% in production and sales
after expansion
• What could have gone wrong
?
Rs lakh Before
expansion
After
expansion
Sales 100 150
Variable
Costs
80 120
Contribution 20 30
Fixed Costs 15 22
Profit 5 8
Plan Actual

68. Teaser 1 : Analysis
Before Expansion After Expansion
Sales
Var
Cost
Contn
A 60 54 6
B 30 15 15
C 10 11 -1
Total 100 80 20
Sales
Var
Cost
Contn
A 100 90 10
B 28 14 14
C 22 24 -2
Total 150 128 22

69. Analysis of Profitability
!
Work out profitability in various ways - Product / Customer / Location /
Market
• to know relative profitability,
• to decide optimum business,
• and initiate efforts for margin improvements
!
For this exercise one needs to bear in mind the following
• Nature of expense- fixed or variable
• Nature of expense- direct or indirect
• Method of allocation of expense- ABC or cost driver analysis
!
Analysis and decision making should go hand in hand.
Profitability analysis and Improvement

70. • Draw up MASTER Budget. It should encompass all business
functions and give Budgeted P&L a/c and Balance Sheet and
cash flow.
• Be realistically aggressive in setting assumptions. E.g. at
Plant - Efficiency & Utilisation, Waste & Reject levels
• Monthly comparison of Actual vs Budget to analyse what is
working and what is not & take timely corrective action.
• Build Accountability
• Timely, Accurate and Reliable Accounts
Budgetary Control

71. Teaser 2

72. Big picture
• What makes a strong Balance
sheet
• Lean is healthier
• Only business
• Personal is personal
• Arm’s length
• Governance is reflected in
Balance Sheet. P&L is short term
memory of 1 year, Balance Sheet
has a perpetual memory
Balance Sheet Management

73. Growth and ways to finance
• Growth needs more capital normally
➢ Increase in capacity, i.e. fixed assets
➢ More working capital
• Owners should bring in some contribution to maintain healthy Debt:
Equity ratio
• Long term sources for long term use
• Bank finance is repayable, so risky portion of business needs to be
shielded by Equity contribution by promoters
• Continuous improvement in conduct of business means doing more
business with less resources

74. Tools & Techniques – Balance Sheet Management
• Working Capital Management
➢ Establish planned stock levels for RM / In Process / FG
➢ Age wise Analysis of Inventory and Receivables
➢ Keep tab on Despatch / day in comparison to Budget.
➢ Monthly review of Working capital thru structured Reports.
!
• Cash flow Management
➢ Draw up Cash Budget based on Yearly / Monthly plan.
➢ Monitor cash inflows based on actual sales & credit period.
➢ Cash is like blood circulation in our body, any obstacle will upset the
operations or will hit the profitability adversely.

75. Teaser 3
• Company A sells in India through distributors and gives 45 days
credit
• Exports are 1/3 of total sales and have 90 days credit
• Inventory (Raw materials, WIP, Finished goods) in total is
planned to be 45 days of sales
• Raw material suppliers are paid 30 days after supply

76. Teaser 3 (continued)
Key figures from Profit & Loss a/c and Balance Sheet are as follows
What are your observations?
Particulars Rs Crore
Sales 360
Raw material
expenses
180
Receivables 75
Inventory 50
Payables 15

77. Working Capital in Finance Terms
• Actual amount required to operate business is usually more than
that indicated by operating cycle.
• Actual Working capital includes amount required for waiting
time and in addition inefficiencies enter that figure.
• Gross working capital = Inventory + Receivables + Cash + Other
items
• Net working capital = Gross working capital – Payables
• All these items are revolving in nature. Time taken to convert to
cash is the key to manage.

78. Business way to look at Working Capital
• Working capital facilitates business
• There is an optimum amount for each item
• Working capital less than that hurts by
hampering business operations
• Working capital more than that sucks cash and
hampers return on capital employed
• Managing more efficiently with less resources is
way to go
• Another one is to collaborate with suppliers and
customers and look at supply chain in a
seamless manner
• Holding more working capital just to get more
finance from banks is not a good idea
• One should have an idea of additional funds
required for working capital before planning for
higher activity

79. Cash Flow Planning
• Short term cash flow planning: (for a
day/ week/ month)
➢ Opening cash/ bank balance
➢ Expected receipts
➢ Expected payments
➢ Closing cash/ bank balance
➢ If it is negative, plans to bridge the
gap
• Significance of this is for managing
liquidity and thereby ensuring prestige
and credibility in market

80. Cash Flow Planning
• Long term cash flow planning
➢ Cash profit= Profit after tax + Depreciation
➢ Cash profit – increase in WC + decrease in WC=
operating cash flow
➢ Cash flow required for capital expenditure
➢ Cash flow planned from raising resources thru share
capital/ borrowings
• Inflow and outflow should match in terms of timing,
purpose. E.g. one should not finance new plant by
borrowing for working capital or by delaying supplier
payments
• Health of Balance sheet is another key parameter to
watch

81. Risks in Business
Financial
Risk!
• Liquidity
(working
capital)!
• Business
Losses!
• Survival
Default Risk!
• Customer
Side!
• Loan
Obligations
Fraud Risk!
• Internal!
• External

82. • Return on capital employed or total assets is important
because assets are financed either from Equity or
Borrowings.
• Any supplier of funds has expectations of return. For lender
it is rate of interest, for equity investor also there is
expectation. Though it is not written in contract, it is higher
because such investor bears more risk.
• If business is not earning enough to meet fund provider’s
expectation, its survival is under question
Why is ROCE important?

84. Data Management and MIS
Purpose
• It is like dashboard in a
car, purpose is to indicate
whether vital parameters
are healthy or not
• So, it should link with
management objectives.
Have Data to serve the
objective
• It pervades all functions
(not just finance)
• Whole organisation speaks
one language
• Garbage In Garbage Out
• Unified organisation- no
silos – no duplication
• Onlineness is critical
• Install it for business
benefits, e.g.
improvement in Plant
performance and monitor
as such
• Belongs to all functions
• Have a Data Base
Administrator
Discipline in ERP

85. Business Dashboard
Important to see data
for each period and not
get lost in cumulative
data
1. Compare sales growth
and contribution for
categories vs. budget, last
year
2. Shows sweating of
fixed assets, compare
with plan, last year
4. Calculate each element
of WC (stock, debtors,
creditors) in no of days
sale and compare with
plan, actual trade terms
3. Compare fixed
expenses incurred with
budget, last year
ROC
E
2.
Output
per unit
of fixed
asset
3. Fixed
expenses
1.Sales and
Contributio
n
4.
Working
capital as
no of
days sale

86. • Analysis of profitability is key to making decisions
• Budgeting and review of actuals is key to bringing in
accountability for results and binding all function
across in the organisation with a common goal.
• Lean Balance sheet is healthy one. Balance sheet
should exhibit business focus and good governance.
• Return on Capital Employed indicates overall health
and needs to be more than investor/ lender
expectations
• Data Integrity across the Organisation is crucial as all
functions should talk / interact on the same database /
platform. Data should be reliable and online.
Wrap up

88. Case Study
Background
• Profit improvement in an Indian SME
in Fashion Garment.
• Objective - To grow better than
Industry in a sustainable way
Situation / Challenges
• Absence of Budgeting process.
• Lack of analysis of profitability.
• ERP system - Many user issues
hampering effectiveness
Actions
• Channel wise Profitability introduced.
• Budgeting process linking operational
Goals of all function with the Corporate
OBJECTIVE.
• Cross functional user group meetings to
resolve ERP system issues to get correct
DATA & analysis thereof.
• Build processes and systems to sustain
the gains.
Result
• Price revision in less profitable
channels or reduce sales.
• Help in Strategy formulation to decide
& prioritise sales to more profitable
channels.
• Financial review - Budget v/s actual to
take timely action based on data /
Report generated thru ERP.

89. 6 MANTRAS FOR
GLOBAL BUSINESS
EXCELLENCE
• Strategy – Strategize and grow
• Operations – Stay Nimble
• Finance – Analyse & Prosper
• Leadership – Influence & Impact
• Customer & Market – Value the
Relationship
Human Asset
(People as differentiators /
Creators)

90. HUMAN ASSET
(People as differentiator / creator)

91. HUMAN ASSET
Planning and Management
Performance and Recognition Well-being and Satisfaction
Education and Training

92. Performance and Recognition
Drives and improves organization
performance by :
• Aligning individual & team
performance with organizational goals
- SMART KRA’s for all employees
• Defining expectations for performance
• Reviewing performance regularly &
providing feedback
- Mid year and annual appraisal
process
• Enhancing skillsets
What gets measured gets done !

93. Balanced Scorecard - Strategic Performance Management Tool
• Looks at your organization from 4
different perspectives to measure
its health.
• Each of these perspectives focuses
on a different side of your company,
creating a balanced view of your
organization.

94. Rewards and Recognition
•Build strong linkage of rewards to
performance
•Rewards can be monetary and non-monetary
– Monetary : Monthly / Quarterly / Yearly
incentives at all levels linked to annual
plans , Annual salary increments
– Non –monetary : Employee of the month
/ year , Appreciation certificates ,
learning opportunities , Presentations to
senior leaders
• Creates a culture of high performance
People work for money but go the extra
mile for recognition, praise and rewards
- Dale Carnegie

96. Case Study
Background
• Family managed organization
transitioning to second generation ,
high growth ambition
( double revenue in 3 years ) ,
increasing global footprint .
• Home grown employees and
external hires
Situation / Challenges
No formal performance management
process , Employees don’t have
KRA’s / Targets, Organization growth
targets not cascaded to individual
employees , Expectations not clear to
employees , Inter-functional issues
Feedback ad hoc & unstructured
Actions
• KRA process established for global
leadership team ( 50 employees )
• Individual conversations, Functional &
role expectations set out clearly
• A clear linkage to organization level
targets put in place , Measurement
criteria established & a quarterly
review process.
Result
• Structured process of reviews
• Role clarity / overlap issues
resolved
• Accountability fixed
• Consistent process across globe
brought higher transparency and
engagement

97. Business Excellence Scoring Scale
Inte
gra
ted
Reactive
!
Systematic
10% - Anecdotal
20% - Reactive System
30% - Beginning of Proactive Approach
40% - Proactive and Systematic
50% - Evaluation and Improvement Process
60% - Benchmark within competition
70% - Benchmark in the Industry
80% - Benchmark in the Sector
90% - World Class Organization
Source: Baldrige National Quality Program

98. Thank You