MBI's 2005-08 Business Excellence Transformation summary

1. Moser Baer Business Transformation Journey
Driving the Business Architecture
Sandeep (Sandy) Muju
Corporate Vice President (Business Excellence)
and
Head, Solid State Electronics SBU
“Our Business Excellence framework will strive to continually improve our business
in all its aspects and do it in a balanced manner laying the foundations
for a deeper organizational capability enhancement leading
to enhanced organizational values and results”
Mr. Deepak Puri
Chairman & Managing Director (“CMD”), Moser Baer

2. Moser Baer (MBIL) is a leading high-growth high-tech manufacturing company of India.
In 2008 it completed its 25th year anniversary with about $500M Revenue run-rate.
At the beginning of 2005 it was operating at about $300M Revenue run-rate.
Although a public company, its original founder and the founding family still runs the
company and own over 20% equity in the company.
Until 2005 it was a single business company, with a leading position in CD/DVD market.
Since 2005 it has rapidly diversified and added
Photovoltaic (solar energy), Solid State Electronics and, Entertainment SBUs
My tenure with Moser Baer (2005 – 2007) started with the purpose of helping guide the
diversification as well as developing and then driving implementation of an upgraded
management operating system readying MBIL to be a multi-business $Billion company

3. Moser Baer Stock Price: Feb’05 - July’07 (Bombay Stock Exchange)

4. Organizational Transformation Roadmap
Stage-II: The Deployment
Change Initiation
and
Alignment
Prioritization
and
Results Orientation
Leveraging
the
Momentum
Phase I Phase II Phase II+
Creation cycle
Reinforcing cycle
Routine cycle
Legend

5. Moser Baer Planning & Execution framework:
Core Management Operating Engine
Strengthening the Core:
Strategy Development, Deployment and Execution
linked with Budgeting and Human Capital Management
Performance Management
Reward & Recognition, KRA based
BSC alignment, Mid-year Reviews,
Annual Performance Reviews
Strategy Execution
Prioritization & Resource Allocation,
Six-Sigma Y=f(x) Projects Framework,
Reviews Framework,
Management Reporting
Business Strategy Development & Deployment
Strategic Planning (STRAP) & Strategy Mapping,
Balanced Scorecard Objectives Identification,
Target Setting
Budgeting
(ABP/AOP)
Planning
Execution
Stage-II: The Deployment

6. The “Planning” Cycle
Robust Plans integrate the
Strategic Direction (i.e., the Strategy),
Available funds (i.e., the Budgets/AOP), and,
Available Capacity (i.e., the Execution Capability)
Strategy Execution
Prioritization & Resource Allocation,
Six-Sigma Y=f(x) Framework,
Operating Reviews Framework,
Management Reporting
Strategy Development & Deployment
Strategic Planning & Strategy Mapping,
Balanced Scorecard Objectives Identification,
Target Setting
Budgeting
Planning
Stage-II: The Deployment

7. The “Execution” Drive
Best of the Plans can turn into reality only with effective Execution
Performance Management
Reward & Recognition,
KRA based Corp. Strategy linkages,
Mid-year Reviews/Corrections
Annual Performance Reviews,
Strategy Execution
Prioritization & Resource Allocation,
Six-Sigma Y=f(x) Framework,
Operating Reviews Framework,
Management Reporting
Strategy Development & Deployment
Strategic Planning & Strategy Mapping,
Balanced Scorecard Objectives Identification,
Target Setting
Execution
In large organizations, regardless of the specific industry,
effective Execution requires both the strategy execution formalism
as well as human capital performance management.
Stage-II: The Deployment

8. STRAP (Strategic Planning):
Identification of Strategic Opportunities for MBIL
Filter 1 — Synergy
Filter 2 — Opportunity
& Risk
Filter 3 — Capability
& Capacity
•Existing Businesses
•Customer
•Technology / Manufacturing
•Market size & growth rate
•Industry competitive position
•Industry margins
•Capital intensity / payback
•Access to / control over supply chain
•MBIL existing capability
•Possibility of acquiring capability
Vision & Mission

9. Corporate-SBU-Individual Goals/Objectives:
Aligning the entire Organization
Corporate BSC
Objectives/Targets
Business Unit BSC
Objectives/Targets
Functional SC
Objectives/Targets
Individual
KRAs
E.g., Total Revenues target,
Total PBT/ROI target, etc
E.g., SBU Revenues target,
SBU PBT/ROI target, etc
E.g., Sales target,
Cost target
E.g., Project
targets
Stage-II: The Deployment

10. Corporate Strategic Objectives
PV
Business
Unit
Blank
Optical
Unit
Solid State
Electronics
Unit
Strategy Execution Backbone:
Creating a common Execution Framework
Holistic Six Sigma (Y = f(x)) based Strategy Execution backbone
Stage-II: The Deployment
New
Business
Unit(s)
Plant(s) and Function(s)
centric