World Class Leaders in 4+2 Frame work

Internal - General 4+ 2 Framework
World class
quality
Practices
Leaders in
4+2
Framework

Agenda
• Today’s Global Business
Environment
• 4+2 Frame work for leadership.
• Synthesis of feedback by
members
• Summary.
• Conclusion.
2

3
Today’s Global Business Environment
• Ever changing needs & aspiration of global & local customer.
• Dynamic market situation due to
• Globalization & economic liberalization.
• Changes in financial market.
• Stringent statutory & regulatory norms.
• Margins vs. Pricing pressures.
• Quality vs. Cost.
• Lean Inventories vs. Adequacy for variety.
• JIT material flow vs. logistics costs.
• Information sensitivity.
Poses Challenge of
Maintaining growth and market share

Operation’s Approach
4
WORLD CLASS LEADERS
4 + 2 FRAMEWORK
3% have sustained leadership over last 10 years.
97% have been climbers, losers or tumblers.
IN

4+2 Framework for Leadership
Primary
Practices:
Strategy
Execution
Culture
Structure
5
Secondary
Practices:
Talent
Leadership
Innovation
+
(All must) (Atleast 2)

SUPERIOR
BUSINESS
PERFORMANCE
4 + 2
FRAMEWORK

1. World-class products, meeting
customer expectations.
2. World-class quality in our products
& processes
6
Are we Customer
focused ?
Do we understand our
customers?
Narrow focus on key
customer requirements
Customer don’t care about a level of quality that goes beyond their needs and
desires; they won’t necessarily reward you for exceeding their expectations.
They will however punish you severely if you don’t meet their expectations.
Word of caution by Mr. Nohria
Focus on excellence which will
enhance value to customer
2. Visionary Customer Driven Leadership Strategy with focus on future

Internal - General 4+ 2 Framework 7
S.No What High Business Performance Company do
1.1 Devise and maintain a clearly stated, focused strategy.
1.2 Build strategy around a clear value proposition for customers & realistic appraisal of company’s capabilities
1.3 Develop Business Plans based upon Top Mgmt directions , Last Year Reflections , Environment factors & SWOT
1.4 Clearly communicate their strategy to all employees , Customers . Share holders , Dealers & suppliers
1.5 Identify stated , Implied needs of customers & establish measures for customer satisfaction.
1.6 Maintain antennae that allow them to fine-tune strategy to changes in the marketplace.
1. Visionary Customer Driven Leadership Strategy with focus on future
 82 % of the members feel that Customer focused approach being adopted by Organizations
results into High Business Performance.
85 91 85 86 82 84
0%
20%
40%
60%
80%
100%
1.1 1.2 1.3 1.4 1.5 1.6
Do not Agree
Partially Agree
Strongly Agree

Operational
Excellence and
Execution
Which processes are most important to meeting
Customer’s needs (Meet Customer Expectations–
Not Exceeding) and focus energies and resources
on making those processes as flawless/efficient as
possible.
2. Operational Excellence & Execution
Breakthrough improvement, year on year on key
parameters w.r.t business goals.
Speed of information/critical decisions/ actions
Outperform competition by twice the industry
average on key business parameters
Be simple & realistic

 81 % of the members feel that Winners create excellence in execution by Operational Excellence
S.No What High Business Performance Company do
2.1 Develop and maintain flawless operational execution – well aligned
2.2 Winners consistently slash operational costs while increasing productivity by leap & bounds.
2.3 Simple , East to understand Execution Plans with Measures understood by all
2.4 Empower front lines to respond to improve EBITA.
2.5 Constantly strive to improve productivity and eliminate all forms of excess and waste
2.6 Deliver products and services that consistently meet customers
2. Operational Excellence & Execution
87 84 88 81 89 85
0%
20%
40%
60%
80%
100%
2.1 2.2 2.3 2.4 2.5 2.6
Do not Agree
Partially Agree
Strongly Agree

Exploit C.F.T’s
Approach
Incentive Scheme for Delivery ?
Raise the bar every year
Enforce bench marks
Variable Pay (removing subjectivity
while Evaluating Performance)?
Abide by clear values & ethics
Make the work
environment fun
Reward the Performers
How
Do not reward if
targets are not met.
Promote high
performance,
values& ethical
behavior
3. High Performance Driven Culture

S.No. What Winners do in creating high performance driven culture
3.1 Develop and maintain a performance-oriented culture.
3.2 Inspire all to do their best.
3.3 Reward achievement with praise and pay-for-performance, but keep raising the performance.
3.4 Create a work environment that is challenging, satisfying, and fun.
3.5 Establish and abide by clear company values.
3.6 Employees are trained to build competence & Participate in QC Circles
 63 % of the members feel that Winners embrace corporate cultures that support
high-performance standards, which employees universally accept
3. High Performance Driven Culture
66 71 68 63 74 69
0%
20%
40%
60%
80%
100%
3.1 3.2 3.3 3.4 3.5 3.6
Do not Agree
Partially Agree
Strongly Agree

Approach
Simple & easy for employees,
customers, vendors.
Reduce non-value added
activities(unnecessary
bureaucracy).
Visual control systems-fill relevant
data which adds value on a daily
basis.
Up to date real time information
for decision making empowerment.Speed of communication -
fast
Remove
functional silosDecision making must be fast
Key business
processes must
be rapid
This Decision symbol is
incomplete
How
4. Fast Flat Structure for Speed & Agility for
Information, Decisions & Actions

S.No. What Winners Do With Structure
4.1 Eliminate redundant organizational layers and bureaucratic structures and behaviors.
4.2 Fast decision making.
4.3 Visual control systems - Upto date real time information for decision making empowerment .
4.4 Fast speed of communication.
4.5 Promote cooperation and the exchange of information across the whole company.
4.6 Put their best people closest to the action and keep their front line stars in place.
75 % of the members feel that Winners create and adapt structures that reduce
bureaucracy and simplify work. Simpler is faster and better
4. Fast Flat Structure for Speed & Agility for
Information, Decisions & Actions
77 83 85 75 84 79
0%
20%
40%
60%
80%
100%
4.1 4.2 4.3 4.4 4.5 4.6
Do not Agree
Partially Agree
Strongly Agree

1. Develop Talent
Its people & the knowledge that resides in them, that makes the difference
Develop Talent by giving Best
and Relevant training
Build Performers by giving
them challenging assignments
Development of people should be
the part of KRA of every manager
Tap the
knowledge that
resides in people
Job Rotation
Hire the Best Talent

S.No What High Business Performance Company do with Talent
1.1 Fill mid- and high-level jobs with internal talent whenever possible
1.2 Create and maintain top-of-the-line training and educational programs
1.3 Design jobs that will intrigue and challenge the best performers
1.4 Top management becomes personally involved in winning the war for talent
1.5 Development of KRA of an employee is responsibility of every manager
 77 % of the members feel that its People & Knowledge that resides in them, that
makes the difference in organizational growth.
1. Develop Talent
84 85 77 79 88
0%
20%
40%
60%
80%
100%
1.1 1.2 1.3 1.4 1.5
Do not Agree
Partially Agree
Strongly Agree

Institutionalize Innovation in products, Services and Processes
2. Managing Innovation
Continuous striving for improvement and change
Break thru In each and every aspect of life
How
Approach
Create atmosphere to lead
change Suggestion schemes
Quality circles
Innovation forum

S.No. What Winning company do in Innovation
2.1 Make innovations that are industry transforming.
2.2 Create atmosphere to lead changes –Suggestion schemes , Innovation Forum ,Quality circles etc
2.3 Continuous striving for improvement and change
2.4 Breakthrough in each & every aspect of life
2.5 Don’t hesitate to cannibalize existing products
2.6 Do competitive Benchmarking
 79 % of the members feel winning company institutionalize Innovation in Products,
Services & Processes .
2. Managing Innovation
84 81 79 86 76 81
0%
20%
40%
60%
80%
100%
2.1 2.2 2.3 2.4 2.5 2.6
Do not Agree
Partially Agree
Strongly Agree

The 4+2 Summary..
188-4-2004
• 2. Visionary Customer Driven Leadership Strategy with focus on future.
• 2. Operation Excellence in Value Addition.
• 3. Performance Driven Culture.
• 4. Fast Flat Structure for Speed & Agility for
Information, Decisions & Actions.
• +2. Managing for Innovation.
• +2. Organizational and Personal Learning for Productive Employees.
Relentless excellence in the four primary & any two secondary practices
+

• The researchers identified elements – 4 Primary and 2 secondary – that directly
correlated with superior corporate performance as measured by total return to
shareholders.
• Winning companies achieved excellence in all four primary elements, plus two
of the secondary ones – hence the 4+2 formula.
• Exceptionally difficult juggling act—must keep all six plates (4+2) in the air
spinning at the same time. If one falls down, they all fall.
• The 4+2 factors are all interrelated and must always function at the highest level
to continue to be a winner.
• Staying on top is more difficult than getting there.
19
Conclusion

World Class Leaders in 4+2 Frame work

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