SUSTAINING IN THE VUCA WORLD

1. NOCET 2017
NTPC IN THE VUCA WORLD
Sustaining performance in the VUCA world
Anuj Verma, E2
Niraj Sangode,E3
Neeraj Tiwari, E3
Team GreenOS

2. Introducing the VUCA World
One who traverses through the VUCA storm will be the true Leader

3. Click to edit Master title styleWe will Cover…….
● Understanding the term VUCA
● Analysing the VUCA environment from NTPC perspective
and our VUCA Antidotes.
● Role of Leadership in VUCA world
● Sustaining Performance in VUCA World
● NTPC’s Desired State.

4. VUCA Background and History
US Army Defence College
1990
’s
Global Financial Crisis
2008

5. VUCA stands for
V
C
AU VUCA
VOLATILITY
AMBIGUITYUNCERTAINITY
COMPLEXITY

6. V
C
AU VUCA
VOLATILITY
1
✦This is the nature, speed, volume,
and magnitude of change that is not
in a predictable pattern (Sullivan,
2012).
✦Dynamics of change is high.
✦It is turbulence, a phenomenon that is
occurring more frequently than in the
past.

7. V
C
AU VUCA
UNCERTAINITY
2
✦The lack of predictability in issues
and events (Kinsinger & Walch,
2012).
✦Great prospects for surprise.
✦Difficult for leaders to use past events
as predictors of future outcomes,
making forecasting extremely difficult
and decision-making challenging

8. V
C
AU VUCA
COMPLEXITY
3
✦It has to do with numerous and
difficult-to-understand causes and
mitigating factors (both inside and
outside the organisation) involved in
a problem (Sullivan, 2012).
✦Multiplicity of forces.

9. V
C
AU VUCA
AMBIGUITY
4
✦The “causes and the ‘who, what,
where, how, and why’ behind the
things that are happening (that) are
unclear and hard to
ascertain(Sullivan, 2012).
✦High potential for mis-reading
conditions.

10. UNDERSTANDING VUCA IN NTPC PARLANCE CLASSIFICATION
OF
NTPC’s
CHALLENGES
THROUGH
VUCA

11. Volatile Situations for NTPC
1
Demand for Electricity
Surging Coal Prices
Labour issues
Land Reforms
Emission Standards
Foreign Policy Issues
2
3
4
5
6

12. Uncertain Situations for NTPC
1
Thermal Power Demand
Coal Supply
Financial Soundness
Divestment of PSU
2
3
4

13. Complex Situations for NTPC
1
Safety Lapses
Partial Load Operations
Ash Management
Forced Shutdowns
Zero Effluent Discharge
Private Competition
2
3
4
5
6

14. Ambiguous Situations for NTPC
1
Future of Older Units
Future Product Mix
Workforce Planning
2
3

15. Sailing
through the
VUCA
Storm
Through Leadership
Development

16. Leadership Traits to address Specific Challenges
VOLATILITY UNCERTAINITY COMPLEXITY AMBIGUITY
ABILITY TO MAKE
SENSE OF CHAOS
VISION UNDERSTANDING CLARITY AGILITY
LEARN
IMPROVISE,INNOVAT
E AND ADAPT
ABILITY TO STOP
LOOK AND LISTEN
INTENT THAT SEEKS
TO CREATE A
FUTURE

17. Functions of the “VUCA Leader”
Promoting Experimentation and
Cognitive Diversification.
Anticipating and Detecting shifts
in Customer preferences.
Translating fresh and innovative Ideas into
differentiating capabilities.
Unzipping business challenges to reveal our learning
gaps.
01
02
03
04

18. Click to edit Master title style
Enablers- Actions required by the leader Desired State-Realising our Dream Inhibitors-Key Restraining forces
NTPC’s Desired State: Realising Vision 2032
Find the GAP
Focus on Horizon
Fly the OODA Loop
Fail Wisely
Networking Minds
Gift Small goods
Lack of Strategic
Intelligence
Short-term Focus
Status-quo culture
Risk Averse
Silo Mentality
Uninspired people
130 GW CAPACITY 30% RE 600 BU GEN

19. Thank You

20. Click to edit Master title style20VUCA Antidote for Demand for Electricity
▪ Rationalise ECR

21. Click to edit Master title style21VUCA Antidote for Surging Coal Prices
▪ Develop Indigenous Coal
Mines

22. Click to edit Master title style22VUCA Antidote for Land Reforms
▪ Capitalise on Available
Land Banks

23. Click to edit Master title style23VUCA Antidote for Labour Issues
▪ Vendor enlistment and
wage security

24. Click to edit Master title style24VUCA Antidote for Emission Standards
▪ Stricter Affecting Parameter
Monitoring

25. Click to edit Master title style25VUCA Antidote for Foreign Policy Issues
▪ Liaising with neighbours to
sell power.

26. Click to edit Master title style26VUCA Antidote for Thermal Power Demand
▪ Make Coal Power more
competitive.
▪ Develop more Renewable
Power.

27. Click to edit Master title style27VUCA Antidote for Coal Supply
▪ Coal-Swapping and Coal
Linkages with among closer
projects.

28. Click to edit Master title style28VUCA Antidote for PSU Divestment
▪ Imbibe Private
Culture as early
as possible.

29. Click to edit Master title style29VUCA Antidote for Financial Soundness
▪ Masala Bonds in
International
Markets

30. Click to edit Master title style30VUCA Antidote for Safety Lapses
▪ Mock Safety
Drills
▪ Safety Audits
▪ Safety Rewards
and Awards

31. Click to edit Master title style31VUCA Antidote for Partial Load Operation
▪ Anticipatory
Actions to gain
on DSM.
▪ Opportunity for
APC reduction.

32. Click to edit Master title style32VUCA Antidote for Forced Shutdowns
▪ Leveraging the
occasion to attend
Generation Affecting
Defects.

33. Click to edit Master title style33VUCA Antidote for Zero Effluent Discharge
▪ Bring down Specific
water Consumption.
▪ Support the environment
▪ Abide by Government
Regulations.

34. Click to edit Master title style34VUCA Antidote for Ash Management
▪ Envisage the Use of Fly
Ash in Cement Plant
▪ Ash Bricks for Local
Selling
▪ Land filling of
Abandoned Mines
▪ Joint Ventures and
Viability Gap Funding for
Entrepreneurs to set up
Brick and Cement Plants

35. Click to edit Master title style35VUCA Antidote for Private Competition
▪ Reassess and rejig the
entire business structure.
▪ Cost Optimisation without
compromising on
performance.
▪ Cross- Learning to identify
more opportunities to
become leaner.

36. Click to edit Master title style36VUCA Antidote for Future Product Mix
▪ Research Based endeavour
into renewable energy
▪ Effective Forecasting of Green
Power and Black Power
Demand in tandem

37. Click to edit Master title style37VUCA Antidote for Workforce Planning
▪ Optimise Man: MW
Ratio based on
research and
grass-root inputs.

38. Click to edit Master title style38VUCA Antidote for Older Units
▪ Gradual Elimination of
Older Units to pave way
for Newer and larger one.
▪ Land Issue will be
resolved
▪ Emission targets at
existing location can be
over-achieved.