The document discusses the Tata Business Excellence Model (TBEM) framework for achieving business excellence and world-class performance. It outlines the seven categories of TBEM including leadership, strategic planning, customer focus, measurement and analysis, workforce focus, process management, and business results. It also discusses using TBEM to develop strategies, deploying through key business processes, and continuously evaluating and improving to close gaps.

1. Good Morning

2. Tata Business Excellence Model 2010 Augustine Xavier [email_address] 66132166 June 28, 2011 JRDQV Winner 2005 Highest Delta Award JRDQV Winner 2007

3. Vendors Customer Tata Motors Dealers, TASSs Distributors Customer A Chain is as ……. Strong as its weakest link

4. Let us move together on our Journey to Excellence

5. Excellence Habits Thoughts Attitude Values Behaviour Strengthen values…. Why Values Are Important

6. Steps Towards Excellence PCBU is here CVBU is here 1000 point scale Global Image Excellent Average Beginning 0 – 250: Early Development 251 – 350: Early Results 351 – 450: Early Improvements 451 – 550: Good Performance 551 – 650: Emerging Industry Leader 651 – 750: Industry Leader 751 – 875: Benchmark Leader 876 – 1000: World Class Leader

7. Models for Excellence 550-450 Malcolm Baldrige award model RBNQA by IMC (Ramkrishna Bajaj National Quality Award – Indian Merchant Chamber) Tata Business Excellence Model 500-500 European Quality Award model CII-Exim Award Rajiv Gandhi National Quality Award Deming Award for Operational Excellence 1000 point scale

8. Model 2008 Strategic objectives and Action plans/Initiatives

9. Core Values Applying them in performance excellence

10. Core Values in High Performing Companies Systems Perspective Visionary Leadership Organizational & Personal Learning Agility Valuing Employees & Partners Managing for Innovation Customer- Driven Excellence Focus on the Future Management By Fact Focus on Results & Creating Value Social Responsibility

11. Visionary Leadership Setting directions and creating customer orientation The directions,values and expectations address all stakeholders Strategies systems and methods are for achieving excellence, stimulating innovation and building organizational capabilities Developing people and encouraging participation, learning ,creativity and innovation should be responsible to governance body, which in turn is responsible to stakeholders Personal role models in ethical behaviour

12. Customer driven Excellence Quality is judged by customers . Hence,we need to take into account all product and service features that contribute to customer satisfaction These factors include anticipating future needs of customers Defect Prevention and error reduction important ‘ Makings things right’ is crucial It is directed towards customer retention,market share gain and growth It demands awareness about developments in technology and competitors’ offerings and rapid and flexible response

13. Organizational and Personal Learning Incremental and Breakthrough Learning is embedded in the organization. (Adaptation to Change) Sources of improvement are R&D,customers, Benchmarking etc Improvement is a part of work . Improvement and learning directed not only at better products but being more adaptive,more responsive and efficient

14. Valuing Employees and partners Investing in development of People Opportunities like job rotation and increments for enhanced knowledge On the Job Training and computer learning Means for regular communication , approaches to evaluate progress ,and means for adapting to changing conditions essential Partnership development Internal - employees External - customers, suppliers and alliances

15. Agility Faster and more flexible response Simplification of work units and processes Time among the key performance measures Simultaneous improvements in organization Simultaneous improvements to Quality, time and other objectives

16. Focus on the future Understanding the short term and longer term factors that affect the business and market place Strong future orientation and willingness to make long term commitments to key stakeholders Planning to anticipate many of the factors related to stakeholders Developing employees and suppliers and creating opportunities for innovation Strategy 2020 2012 2008

17. Managing for Innovation Making meaningful change to the organization’s products, services and processes Innovation should lead to new dimensions of performance Innovation in all aspects of business Innovation becomes part of culture Innovation Day SQDCM Reviews Innovation Formats Patents & Copy rights Share Café & SBS

18. Management by Fact(s) Measurements linked to strategy and aimed at alignment with the goals Performance areas include all stakeholders Extracting meaning form the data collected Data and analysis support variety of purposes Measurements are themselves evaluated for suitability SAP PLM Legacy BSES MIS

19. Social Responsibility Basic Expectations - ethics,environment, safety etc Applies to products,services and operations Emphasis on resource conservation and waste reduction at source Prevention is emphasized Think ”beyond mere compliance ” Ethical behaviour from leaders and monitoring by governance body Leadership and support to communities Influencing other organizations as partners

20. Focus on Results and Creating value Performance measurements to focus on key results Results used to balance value for stakeholders Conflicting requirements of stakeholders given attention Balanced composite of leading and lagging performance measures offer means to communicate priorities Partners Strategy Processes Financial People

21. Systems Perspective TBEM provides the system perspective for managing the organisation for performance excellence Synthesis- Looking at the organisation and building requirements like objectives and action plans. Alignment- Using key linkages among TBEM requirements to ensure consistency of plans Integration- Individual components of Performance management system operate in a fully interconnected manner. System Operations Cat 1,2,3, Leadership triad 5,6 and 7 results triad System foundation Cat 4

22. Value Driven Organization In an organization driven by values , we can feel the pulse running across Deployment more natural People identify themselves with the goals better Integration is ensured

23. Role of Core Values in Business Excellence TBEM Criteria Excellence TBEM Core Values & Concepts Industry Leadership

24. Tata Business Excellence Model Approach Processes/Systems Measures Deployment Implementation in all areas Evaluate & Improve Find and fill gaps

25. TBEM: Bicycle Analogy 3 Customer and Market Focus 1 Leadership 2 Strategic Planning 5 Workforce Focus 7 Results 6 Process Management Environment, Raltionship and Challenges Strategic Objectives and Action Plans 4 Measurement, Analysis and Knowledge Management

26. TBEM 2008 Framework The Seven Categories & Point Values 1.0 Leadership 120 2.0 Strategic Planning 85 3.0 Customer and Market Focus 85 4.0 Measurement Analysis & Knowledge 90 management 5.0 Human Resource Focus 85 6.0 Process Management 85 Total 550 7.0 Business Results Product & Customer Outcomes 100 Customer Focused Results 70 Financial and Market Results 70 Human Resource Results 70 Org Effectiveness Results 70 Leadership and Social Resp Results 70 Total 450 Total 1000

27. Balanced Scorecard

28. Strategic Initiatives (Action Plans) Challenges Strategic Objectives Strategic Direction Approach Pressures exerting a decisive influence on our likelihood of future success External challenges – Market, customers, technology, financial/ societal risks Internal – Capabilities, HR Our response to Challenges in terms of broad Intents Clear deliverables in terms of targets, timeframes, accountability Enterprise Processes (EPM) Achieve Objectives through already available set of Processes Achieve Objectives through Company wide Initiatives, where processes are not present BRC Document Product / Service Processes: Item 6.1 Design Processes (6.1a) Production / Delivery Processes (6.1b) Service Processes (6.1b) C U S T O M E R Leadership Processes: Category 1 Key Business Processes : Item 6.2 Internal and External Communication Strategic Planning Leadership Support Processes: Item 6.3 Facilities and Environment Management HR Management Information Management Finance and Budgeting Vehicle Financing Performance Improvement and Change Management Vendor Management Market Development Channel Partner Management Sales Planning Sales and Operations Planning Manufacturing New Product Introduction Services design After Sales Service

29. Our aim is to become World Class Corporate What does it means by world class corporate ? By 2010 -11… CVBU aspires to be… Amongst the top 3 CV Truck manufacturers globally – currently it is the 5th largest truck manufacturer in the World 2) To sustain at # 2 in buses (which it is currently) and try attaining # 1 position by 2010-11 · The strategy aspires for Total CV sales above 10,00,000 of which - · Export to be above 2,00,000

30. 2011-12 Overall performance Outlook assessment and develop strategic direction Three Phase Strategic Direction Consistent growth in top line and bottom line 2000 Turnaround Domestic Growth International Growth World class products Non-vehicle Business International business Globally benchmarked processes 04 06 Cost Reduction Strengthening the sales & service network Products appropriate to market needs 2000-01  Record loss  Low morale  Inadequate Customer engagement  Limited Process Management 02 And beyond…

31. Strategic Planning Customer and Market Focus Process M anagement HR Focus Leadership Measurement, Analysis and Knowledge Management Business Results TBEM adopted as a business model to achieve strategy Successful strategy

32. Balanced Scorecard - Strategy cascade process Goals cascade Performance Outcome BSC Deployment

33. EPM is the heart of TBEM We have been implementing TBEM since 1998 and when we reached a score of 500 we realized the further improvement in scores is possible only when the process model is applicable at organisational level and is linked to other level processes We introduced EPM in 2003 with 19 top level processes and 90 level 2 processes Now we have 17 Process Families and 100+ Sub Processes It is a Best Practice within Tata Group and also in the Industry

34. Process Management 17 100

35. Process Management MANAGEMENT PROCESSES VALUE CREATION PROCESSES Human Resource Management (EL-15) Facilities & Environment Management (EL-14) Finance & Budgeting (EL-17) Information & Knowledge Management (EL-16) Leadership & Corporate Citizenship (EL-01) Organisational Governance (El-19) Internal & External Communication (El03_ Strategic Planning (EL-02) Performance Improvement & Change Management (EL-04) CUSTOMER and Other Stake Holders (Employees,Investors,Govt, Society) Expectations, Statutory Requirements Demand Creation Processes Market Development (EL-05) Channel Partner Management (EL-07) Demand Fulfillment Processes New Product Introduction (EL-08) Design Processes Sales & Operations Planning (EL-10) Vendor Management (EL-06) Manufacturing (El-11) Production & Delivery Processes After Market Support (EL-09) Service Processes Customer Acquisition (Sales Planning) (EL-12) SUPPORT PROCESSES

36. Leadership System Communicate and Involve Understand Vision, Stakeholder needs, Higher level objectives Set Direction and Plan Review and Adjust to Achieve Plan Organise, Align and Allocate Resources Develop, Reward and Recognise Employees Create a Culture of High Performance Adapt to New Challenges and Raise the Bar Communicate and Build Commitment Build, Motivate, Empower Team for Accelerated Change Innovate, Share and Learn Be a Role Model Tata Code of Conduct Passion for Engineering Corporate Citizenship Customer Focus Integrity Partners Community Shareholders Employees Customers Mission           11 12

37. The Balanced Scorecard provides the organisation with a set of measures in the following Four Perspectives FINANCIAL PERSPECTIVE "TO SATISFY OUR SHAREHOLDERS, WHAT FINANCIAL OBJECTIVES MUST WE ACCOMPLISH?” LEARNING & GROWTH PERSPECTIVE "TO ACHIEVE OUR GOALS, HOW MUST OUR ORGANIZATION LEARN AND INNOVATE?” "TO SATISFY OUR CUSTOMERS, AND SHAREHOLDERS, IN WHICH INTERNAL BUSINESS PROCESSES MUST WE EXCEL?” BUSINESS PROCESS PERSPECTIVE "TO ACHIEVE OUR FINANCIAL OBJECTIVES, WHAT CUSTOMER NEEDS MUST WE SERVE?” CUSTOMER PERSPECTIVE Balanced Scorecard - Concept Measures span the entire organisation

38. BSC - Strategy cascade process Vision & Strategy BRC BSC Individual Performance Performance Management System CVBU Objectives Plant / Functional Objectives Factory/ Divisional / Regional Office Objectives Individual Objectives CX/ Departmental / Area Office Objectives BSC CORE TEAM Process Owner – (ED CVBU) Strategy map, BSC, Initiatives finalisation with CVBU SC Visioning workshop BSC Workshops with Plants/ Sales & marketing Target setting process

39. The Steering Committee Structure

40. Tools, Techniques, Approaches adopted ISO 9000, TQM, Organisational Health Survey 1990 Kaizen, Business Process Reengineering, TBEM, SAP3.1H, Benchmarking, Six Sigma, TWL 1995 BSC, ISO 14001, QS 9000, Enterprise Process Model, SAP 4.6c, NPI, Sales Planning Processes, Touch Customer processes, Steering Committees, Product strategy, Internal Assessment 2000 Knowledge Management initiative, TS16949, SAP-HR, Level 2 process mapping, Strategic Sourcing, Integrated Cost Reduction 2004 Application Matrix, Process Assessment, 5 S improved checklist, TPM 2 nd wave Leadership System, BSC digitisation, Process Management Guide, Process Audit, Pallepu  , Q12-New OHS, SRM, … 2005 3 PL, FBV process mapping, PLM, eCRM analytics, … Journey to excellence 2006 2007 Customer Centricity, BSC digitisation new phase, … 2008

41. 2010-11 Overall performance Outlook assessment and develop strategic direction Three Phase Strategic Direction Consistent growth in top line and bottom line 2000 Turnaround Domestic Growth International Growth World class products Non-vehicle Business International business Globally benchmarked processes 04 07 Cost Reduction Strengthening the sales & service network Products appropriate to market needs 9 times improvement in PBT in last 6 years 2000-01  Record loss  Low morale  Inadequate Customer engagement  Limited Process Management 2005  Record Profit  High Morale  Customer Focused  Process Driven 02 And beyond… We are here…

42. JRDQV Award, Commercial Vehicle Manufacturer, CIO 100 Honoree, CII-Exim Bank award,… Company of the year, 6 th Best Employer, Significant Achievement in TQM, Manufacturing Excellence Platinum Award, 'CFO of the Year 2004‘, 1st prize for Energy Conservation, L.Kirloskar Award for Foundry, Superbrand of India, HIMER Award for best paper, Young Material Manager, Golden Peacock for CSR Hall of Fame for BSC, Greentech Environment, CSIR Dimond Jubilee Award, Best Training Institute, TERI CSR, Strong Commitment to TQM by CII Bharat Gaurav Puraskar, Golden Web Award for Website, INSAAN Suggestion award, Best SDT, HIMER Gold award, National Energy Conservation, TBEM Active promotion 2005 2004 2003 EEPC Award for Export, Best Company Award at Work-skills Competition, 2002 2001 Best CIO Award, Best Shared Services, Star performer from EEPC, Best Supplier Award from Tata Cummins 2006 Rewards and Recognition Best CFO, Golden Peacock for Quality, BHNS Green Governance, Supply Chain excellence, Hellen Keller for supporting disabled people, INSAAN on Suggestions, ABCI on Publicity material & House journal, Hon. Citizen for Kwan-Kju Kim, EMD, Tata Daewoo 2007

43. Turnaround Domestic Growth International Growth Overall Target for 2008 = 700+ Score so far…

44. Thank You 2005