Creating Sustainable Change

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My presentation on sustaining change initiatives at the recently concluded IQPC Process Excellence Week - Africa

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Creating Sustainable Change

  1. 1. Tuesday, February 21, 12
  2. 2. From Strategy Formulation to Execution An Integrated Strategy Management Approach PRESENTED TO: PRESENTED BY: Naveen Narayanan JMD | SSA Business Solutions 21st Feb 2012, Cape TownTuesday, February 21, 12
  3. 3. FIRST OFF: WHAT IS STRATEGY?Tuesday, February 21, 12
  4. 4. 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 organizations 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/>.Tuesday, February 21, 12
  5. 5. Putting it in Context: Present State of CI/ Excellence InitiativesTuesday, February 21, 12
  6. 6. NEED OF THE HOUR PROCESS EXCELLENCE PEOPLE ENROLLMENT CONTINUAL IMPROVEMENT | FACT EVERYONE COMMITTED & BASED MANAGEMENT INVOLVED | PROACTIVE PROBLEM SOLVING NEED OF THE HOUR OPERATIONAL EFFICIENCY WASTE ELIMINATION REDUCE COST | IMPROVE EFFICIENCY REDUCE PROFIT LEAKAGE | ENHANCE EFFICIENCYTuesday, February 21, 12
  7. 7. TYPICAL CI INITIATIVES 7 QC Tools Quality Circles Six Sigma 5‘S’ Daily Work Management TPM ALIGNED WITH STRATEGY? | ARE THEY SUSTAINABLE?Tuesday, February 21, 12
  8. 8. TYPICAL DEPLOYMENT MODEL PILOT SCALE UP SUSTAIN PILOT WAVE SCALE-UP INTERNALIZE (6 MONTHS) (1 YEAR) (3 YEARS) - CREATE BUZZ - COMPANY-WIDE ROLLOUT - INTERNALIZE KNOWLEDGE - PROJECT REPOSITORY - SUPPORT FUNCTIONS - INTERNAL MBBs - LEADERSHIP BUY-IN - FINANCIAL FOCUS - ALIGN WITH BUSINESS PLANNINGTuesday, February 21, 12
  9. 9. But What Really Happens?Tuesday, February 21, 12
  10. 10. UNSUSTAINABLE SUCCESS Peak Launch Decline Success story / scale up Internal ResistanceTuesday, February 21, 12
  11. 11. AND WHY THEY FAIL? Web Hype Not Linked with Vague ₹ Gains Limited Tool Obsession Strategy Leadership ‣ Not piloting first ‣ Project gains not Support ‣ Obsession to apply ‣ Big-Bang rollout ‣ Project not linked ratified by CFO every possible with strategy ‣ Champions not tool/software etc. ‣ Black belts involved at early ‣ Charters not claiming ‣ Tools ahead of ratified by stages business result unrealistic champions savings/ ‣ Leaders not improvements Trained/certified ‣ Lack of Employee Engagement & supportTuesday, February 21, 12
  12. 12. The Execution ChallengeTuesday, February 21, 12
  13. 13. THE EXECUTION CHALLENGE SENIOR LEADERSHIP TEAM STRATEGY/GOALS | BUSINESS PERFORMANCE METRICS BUSINESS EXCELLENCE TEAM LINE STAFF CONTINUOUS IMPROVEMENT | DAILY FIREFIGHTING | WASTE ELIMINATION CUSTOMER MANAGEMENTTuesday, February 21, 12
  14. 14. THE EXECUTION CHALLENGE SENIOR LEADERSHIP TEAM STRATEGY/GOALS | BUSINESS PERFORMANCE METRICS BUSINESS EXCELLENCE TEAM LINE STAFF EXECUTION? CONTINUOUS IMPROVEMENT | DAILY FIREFIGHTING | WASTE ELIMINATION CUSTOMER MANAGEMENTTuesday, February 21, 12
  15. 15. SUSTAINING THE CI INITIATIVE ‣ 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 timeTuesday, February 21, 12
  16. 16. Solving The Execution RiddleTuesday, February 21, 12
  17. 17. INTEGRATED STRATEGY MANAGEMENT ‣ 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” - NCTuesday, February 21, 12
  18. 18. 1. VISIONING & STRATEGIZING ‣ Objective: Institutionalize the annual planning & improvement projects as an integrated management system ‣ Deliverables: ✓ Strategy workshop ✓ Strategy Management Structure ✓ Project Repository ✓ KPI Monitoring SystemTuesday, February 21, 12
  19. 19. 2. PROGRAM MANAGEMENT ‣ 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 ManagementTuesday, February 21, 12
  20. 20. 3. PROJECT 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 creationTuesday, February 21, 12
  21. 21. 4. PROCESS 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 & improvementTuesday, February 21, 12
  22. 22. 5. PERFORMANCE 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 monitoringTuesday, February 21, 12
  23. 23. ISM STRUCTURE Strategy Committee Focus Group Focus Group KPI Secretary to Focus Group Focus Group Internalization & Development & Strategy Project Mgmt Process Mgmt Communication KRA / KRG Committee Master Black Second Layer Belts Group (SLG) HRM Co-opted PEx Communication SLG Consultants (SSA) !Tuesday, February 21, 12
  24. 24. 30,000 FT. VIEW ANNUAL GOAL SETTING DEPARTMENT STRATEGY - OWNED BY ‘PERFORMANCE BUSINESS VERTICAL PLAN FOCUS GROUP’ LEADER STRATEGY PLAN (BVSP) - OVERALL BUSINESS - OWNED BY DEPARTMENT PERFORMANCE ANALYSIS - OWNED BY ‘BVSP’ LEADER HEADS - GOAL SETTING, STRATEGIC - DRILL-DOWN CORPORATE GOALS TO - DRILL-DOWN BVSP TO BUSINESS VERTICAL LEVEL GOALS DEPARTMENT LEVEL GOALS THEMES & OBJECTIVES - DRILL-DOWN TO BUSINESS - STRATEGIC THEMES OBJECTIVES & - STRATEGIC THEMES, INITIATIVES OBJECTIVES & INITIATIVES VERTICAL & DEPARTMENTAL STRATEGY - INTEGRATION OF DSP W/ BVSP PLANSTuesday, February 21, 12
  25. 25. 30,000 FT. VIEW EXTERNAL INTERNAL CUSTOMER POLICY DEPLOYMENT CUSTOMER SURVEY EXTERNAL SURVEY INTERNAL CUSTOMER - KRA LINKAGE WITH STRATEGIC POLICY DEPLOYMENT -CUSTOMERSURVEY ANNUAL CSAT SURVEY - ANNUAL INTER-DEPARTMENTAL SURVEY - INITIATIVES WITH STRATEGIC KRA LINKAGE - ANNUAL CSAT SURVEY - DRILL-DOWN CUSTOMER - SURVEY INTER-DEPARTMENTAL ANNUAL - INITIATIVES PERFORMANCE OF PROJECTS - DRILL-DOWN CUSTOMER VOICE INTO IMPROVEMENT - SURVEY IMPROVEMENT PROJECTS - PERFORMANCE OF PROJECTS REVIEWED BY PROJECT FOCUS VOICE INTO IMPROVEMENT - IMPROVEMENT PROJECTS REVIEWED BY PROJECT FOCUS GROUP INITIATIVES IDENTIFIED BASED ON SURVEY INITIATIVES IDENTIFIED BASED ON SURVEY GROUPTuesday, February 21, 12
  26. 26. GOVERNANCE PROJECT MANAGEMENT PROCESS MANAGEMENT PERFORMANCE REVIEW - ROBUST PROJECT - ORGANIZATION WIDE - OVERALL PERFORMANCE PIPELINE BASED ON CSAT, PROCESS REPOSITORY EVALUATED ANNUALLY DEPARTMENT PROBLEMS, - IMPLEMENTATION OF KPI BUSINESS VERTICAL - STRATEGY PLANNING - PROCESS AUDITS HELD AT BEGINNING OF GOALS YEAR - CHAMPION LEVEL - REPORT PERFORMANCE OWNERSHIP TO STRATEGY COMMITTEE - ONLINE KPI TRACKING & MONITORING - LINKAGE TO KRA - ROBUST MONITORING MECHANISMSTuesday, February 21, 12
  27. 27. ISM Best PracticesTuesday, February 21, 12
  28. 28. TOP DOWN PROJECT SELECTION 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 Performance 2) Market Responsive/ Customer Focus 3) Resource Optimization 4) Great Place to Work STRATEGIC INITIATIVES: 1) Six Sigma Projects 2) Other Strategic Projects 3) People & Process AlignmentTuesday, February 21, 12
  29. 29. PROJECT SELECTION: AN EXAMPLE MISSION: “A GREAT PLACE TO WORK” REFINERY VISION: ROLE MODEL FOR EHS | CONSISTENTLY MOST PROFITABLE AND RELIABLE REFINERY | MARKET RESPONSIVE ENVIRONMENT & MARKET RESOURCE GREAT PLACE TO SAFETY RESPONSIVE/ OPTIMIZATION WORK PERFORMANCE CUSTOMER FOCUS ✓ Improve Reliability of ✓ Bitumen Lorry TAT < ✓ Maintain FO line ✓ Reduce Wastage in Fire Extinguishers 2hr. sample viscosity Canteen ✓ Bring Down Number of ✓ Product Availability for between 150-180 ✓ Minimize complaints in Fires MMPL ✓ Increase Power estate ✓ Biturox Production (All Reliability ✓ Increase number of 3 Grades Availability) ✓ Minimize variation in suggestions ✓ Minimize fill weight LPG Filling ✓ Minimize electricity variation of LPG ✓ Sustain Yield as per consumption in estate ✓ Minimize losses during VDU Column ✓ Optimize overtime in ATF production ✓ Reducing Tankage TAT canteen ✓ Minimizing Crude LossTuesday, February 21, 12
  30. 30. PROJECT HOPPER 3 ‣ Align LSS with annual strategy planning/Balanced 2 4 1 Scorecard Projects based on data and 5 ‣ Business Intelligence ‣ Monthly steering committee meetings to review progress/ identify projects ‣ Customer voice as a source of projects ‣ Linkages with KRATuesday, February 21, 12
  31. 31. IN SUMMARY Performance Management: Strategy Planning: Strategy Customer Touchpoint Analysis, KPI workshop, Strategy Management drill-down, Dashboard Creation, Structure, Project Repository, KPI KRA/KRG Linkages, KPI Monitoring Monitoring Structure Program Management: Team Selection, Governance Structure, Project Linkage w/ Strategic Objectives, Continuous Improvement Process Management: Process Structure Mapping, Process Repository, Process Monitoring Metrics, Change Management System Project Management: Clearly Defined Goals, Project Monitoring/ Tracking, Process DocumentationTuesday, February 21, 12
  32. 32. TO SUM IT UPTuesday, February 21, 12
  33. 33. A bout SSATuesday, February 21, 12
  34. 34. ABOUT USTuesday, February 21, 12
  35. 35. PURPOSE & VISION 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.Tuesday, February 21, 12
  36. 36. HISTORY 1999 2001 2006 2011 Six Sigma Alchemy®(P) Ltd. Business Excellence Enablers SSA IS BORN MANAGEMENT SYSTEMS PROCESS EXCELLENCE STRATEGIC ALIGNMENT - BORN WITH A - ISO 9001, QS 9000, ISO - ENTERPRISE-WIDE - INTEGRATED STRATEGY MISSIONARY ZEAL 14000, ISO 27001 PROCESS MODELING & PERFORMANCE - PROCESS REPOSITORY MANAGEMENT SYSTEM - VISION: ‘MAKE MADE IN - HRMS INDIA SYNONYMOUS TO CREATION - BPMS QUALITY’ - KPI DASHBOARDS - SIX SIGMA - LEAN DEPLOYMENT - GLOBAL ALLIANCES - GLOBAL DEPLOYMENTSTuesday, February 21, 12
  37. 37. ACCREDITATIONS RATED SE-2A BY CRISIL | HIGH PERFORMANCE CAPABILITY HIGH FINANCIAL STRENGTH ISO 9001 CERTIFIED ANSI IACET 1-2007 ISO 27001 ISMS CERTIFIED AUTHORIZED PROVIDERTuesday, February 21, 12
  38. 38. SELECT CLIENTELETuesday, February 21, 12
  39. 39. GLOBAL REACHTuesday, February 21, 12
  40. 40. BASKET OF OFFERING Lean Six Sigma IT & ITES Support Lean Management Performance Management BPMS Solutions Design for Six Sigma (DFSS) TPM Project Management ISO/ISMS/EMS/OHSAS Daily Work Management Process SimulationTuesday, February 21, 12
  41. 41. Thank You!Tuesday, February 21, 12

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