Business Excellence Lecture

7/30/2019 Business Excellence Lecture

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Business Excellence

Opening frontiers for world market



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What does it mean?

Business Excellence: Excellence in every aspect

of business,

Opening: Exposure, Acceptance by other

people,

Frontiers: the main area where we meet people

face to face,

World market: Markets of all countries



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Business Excellence

Excellence

Philosophy

Method

Tools

Core values and

concepts

Deployment of TQM &Assessment as per RBNQA

Six Sigma, Balanced Score Card, X matrix, Process

mapping, QFD, TPM, SPC, MBTI



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National Quality Awards

IMC_RBNQA

CII Exim Bank Excellence Award

RGNQA



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IMC Ramkrishna Bajaj National

Quality Award

RAMKRISHNA BAJAJ

22-09-1923 to 21-09-1994



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Quality Award

Ramkrishna Bajaj National Quality Award

Established: 1998

Award is given for excellence in

• Manufacturing

• Service

• Small Business

Certificate of merit and commendation certificate is

given to those who qualify.



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IMC Juran Quality Medal

• PAST WINNERS

• 2005 Mr Rahul Bajaj

• 2004 Dr Verghese Kurien

•2003 Mr Ratan Tata

• 2002 Dr R A Mashelkar

• 2001 Dr J J Irani

• 2000 Mr F C Kohli

• 1999 Mr Chandra Mohan

• 1998 Mr Suresh Krishna

• 1997 Mr D L Shah



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Quality Award PAST WINNERS

2005 • TATA Chemicals, Babrala

• Larson & Toubro, ECC Chennai

• D A V Public school

• PT Elegent Textiles Indonesia

2004 •TATA Chemical, Mithapur

•BHEL Boiler Auxiliaries,Ranipet

•I-flex solutions, Mumbai

2003 •Birla Cellulosic, Kharach

2002 •Reliance Industries (Hazira)

•University Institute of Chemical Technology

2001 •Indo Gulf Corporation

•Satyam Computer Services

2000 •Thai Acrylic Fibre, Saraburi

•INFOSYS Technologies

1999 •Housing Development Finance Corporation

1998 •Vikram Cement



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Quality Award

Cert. Merit 22

Commendation Cert. 16



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Business Excellence

Leadership

Strategic planning

Customer & Market Focus

Measurement, Analysis & Knowledge Management

Human Resource Focus

Process management

Business results



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Core Values & Concepts

• Visionary Leadership

• Customer-Driven Excellence

• Organizational and Personal Learning

• Valuing Employees and Partners

• Agility



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Core Values & Concepts ….

• Focus on the Future

• Managing for Innovation

•

Management by Fact• Social Responsibility

• Focus on Results and Creating Value

• Systems Perspective



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Core Values & Concepts ….Visionary leadership

Your organization’s senior leaders should• Set directions and create a customer focus, clear and visible values, and

high expectations.

• Ensure the creation of strategies, systems, and methods for achievingexcellence, stimulating innovation, and building knowledge and

capabilities.• Inspire and motivate your entire workforce and should encourage all

employees to contribute, to develop and learn, to be innovative, and to becreative.

• Be responsible to your organization’s governance body for their actionsand performance.

• Serve as role models through their ethical behavior and their personalinvolvement in planning, communications, coaching, development of future leaders, review of organizational performance, and employeerecognition. .



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Customer-driven excellence

Quality and performance are judged by an organization’s customers. Such behavior leads to

customer acquisition,

satisfaction,

preference,

referral,retention and loyalty, and

business expansion.

Customer-driven excellence has both current and future components:

understanding today’s customer desires and

anticipating future customer desires and marketplace potential.

Value and satisfaction may be influenced by many factors throughout your customers’ overall purchase, ownership, and service experiences. Thesefactors include your organization’s relationships with customers, which helpto build trust, confidence, and loyalty.



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Customer-driven excellence………

Customer-driven organizations address not only the product and

service characteristics that meet basic customer requirements

but also those features and characteristics that differentiate

products and services from competing offerings.

Customer-driven excellence is thus a strategic concept. It isdirected toward customer retention and loyalty, market share

gain, and growth. It demands constant sensitivity to changing

and emerging customer and market requirements and to the

factors that drive customer satisfaction and loyalty. It demands

listening to your customers. It demands anticipating changes in

the marketplace.



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Organizational and personal learning

Achieving the highest levels of business performance requires awell-executed approach to organizational and personal learning.Organizational learning includes both continuous improvementof existing approaches and adaptation to change, leading to newgoals and/or approaches. Learning needs to be embedded in the

way your organization operates. This means that learning1. Is a regular part of daily work;

2.Is practiced at personal, work unit, and organizational levels;

3.Results in solving problems at their source (―root cause‖);

4.Is focused on building and sharing knowledge throughout your

organization; and5.Is driven by opportunities to effect significant, meaningful change.Sources for learning include employees’ ideas, research anddevelopment (R&D), customers’ input, best practice sharing, and benchmarking.



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Organizational and personal learning.

Organizational learning can result in

1. Enhancing value to customers through new and improved products

and services;

2. Developing new business opportunities;

3. Reducing errors, defects, waste, and related costs;4. Improving responsiveness and cycle time performance;

5. Increasing productivity and effectiveness in the use of all resources

throughout your organization; and

6. Enhancing your organization’s performance in fulfilling its societal

responsibilities and its service to your community as a goodcitizen.



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Organizational and personal learning.

Employees’ success depends increasingly on having opportunitiesfor personal learning and practicing new skills. Organizations

invest in employees’ personal learning through education,

training, and other opportunities for continuing growth.

Personal learning can result in1.More satisfied and versatile employees who stay with your organization,

2.Organizational cross-functional learning,

3.Building the knowledge assets of your organization, and

4.An improved environment for innovation.

Thus, learning is directed not only toward better products andservices but also toward being more responsive, adaptive,

innovative, and efficient



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Core Values & Concepts ….Valuing employees and partners

An organization’s success depends increasingly on the diverse

knowledge, skills, creativity, and motivation of all its employees and

partners. Valuing employees means committing to their satisfaction,

development, and well-being. Major challenges in the area of valuing

employees include

demonstrating your leaders’ commitment to your employees’ success,

recognition that goes beyond the regular compensation system,

development and progression within your organization,

sharing your organization’s knowledge so your employees can better

serve your customers and contribute to achieving your strategic

objectives, and creating an environment that encourages risk taking and

innovation.



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Core Values & Concepts ….Valuing employees and partners

Organizations need to build internal and external partnerships to

better accomplish overall goals. Internal partnerships might

include labor-management cooperation. Partnerships with

employees might entail employee development, cross training,

or new work organizations, such as high-performance work teams. Internal partnerships also might involve creating network

relationships among your work units to improve flexibility,

responsiveness, and knowledge sharing. External partnerships

might be with customers, suppliers, and education organizations.

Strategic partnerships or alliances are increasingly importantkinds of external partnerships. Such partnerships might offer

entry into new markets or a basis for new products or services.



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Core Values & Concepts ….Valuing employees and partners ….

Also, partnerships might permit the blending of your

organization’s core competencies or leadership capabilities with

the complementary strengths and capabilities of partners.

Successful internal and external partnerships develop longer-

term objectives, thereby creating a basis for mutual investmentsand respect. Partners should address the key requirements for

success, means for regular communication, approaches to

evaluating progress, and means for adapting to changing

conditions. In some cases, joint education and training could

offer a cost-effective method for employee development.



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Core Values & Concepts ….Agility

Success in globally competitive markets demands agility — a capacity for

rapid change and flexibility. E-business requires and enables more rapid,

flexible, and customized responses. Businesses face ever-shorter cycles for

the introduction of new/improved products and services, as well as for faster

and more flexible response to customers.Cross-trained and empowered

employees are vital assets in such a demanding environment.A major success factor in meeting competitive challenges is the design-to-

introduction (product or service initiation) or innovation cycle time. To meet

the demands of rapidly changing global markets, organizations need to carry

out stage-to-stage integration (such as concurrent engineering) of activities

from research or concept to commercialization.



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Core Values & Concepts ….Focus on the future

In today’s competitive environment, a focus on the future

requires understanding the short- and longer-term factors that

affect your business and marketplace. Pursuit of sustainable

growth and market leadership requires a strong future

orientation and a willingness to make long-term commitments tokey stakeholders — your customers, employees, suppliers and

partners, stockholders, the public, and your community.

Strategic objectives and resource allocations need to

accommodate these influences. A focus on the future includes

developing employees and suppliers, doing effective succession planning, creating opportunities for innovation, and anticipating

public responsibilities.



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Core Values & Concepts ….Managing for innovation

Innovation means making meaningful change to improve an

organization’s products, services, and processes and to create

new value for the organization’s stakeholders. Innovation

should lead your organization to new dimensions of

performance. Innovation is no longer strictly the purview of research and development departments; innovation is important

for all aspects of your business and all processes. Organizations

should be led and managed so that innovation becomes part of

the learning culture and is integrated into daily work. Innovation

builds on the accumulated knowledge of your organization andits employees. Therefore, the ability to capitalize on this

knowledge is critical to managing for innovation.



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Core Values & Concepts ….Management by fact

Organizations depend on the measurement and analysis of

performance.

Such measurements should derive from business needs and strategy, and

they should provide critical data and information about key processes,

outputs, and results. Performance measurement should include customer,

product, and service performance; comparisons of operational, market,and competitive performance; and supplier, employee, and cost and

financial performance.

Analysis refers to extracting larger meaning from data and information to

support evaluation, decision-making, and improvement. Analysis entails

using data to determine trends, projections, and cause and effect thatmight not otherwise be evident. Analysis supports a variety of purposes,

such as planning, reviewing your overall performance, improving

operations, change management, and comparing your performance with

competitors’ or with ―best practices‖ benchmarks.

l



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Core Values & Concepts ….Management by facts …

A major consideration in performance improvement and change

management involves the selection and use of performance

measures or indicators. The measures or indicators you select

should best represent the factors that lead to improved

customer, operational, and financial performance. Acomprehensive set of measures or indicators tied to customer

and/or organizational performance requirements represents a

clear basis for aligning all processes with your organization’s

goals. Through the analysis of data from your tracking

processes, your measures or indicators themselves may beevaluated and changed to better support your goals.




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Social responsibility

An organization’s leaders should stress responsibilities to the

public, ethical behavior, and the need to practice good

citizenship. Leaders should be role models for your organization

in focusing on business ethics and protection of public health,

safety, and the environment. Protection of health, safety, and theenvironment includes your organization’s operations, as well as

the life cycles of your products and services.

For many organizations, the product design stage is critical from

the point of view of public responsibility. Design decisions

impact your production processes and often the content of municipal and industrial waste. Effective design strategies

should anticipate growing environmental concerns and

responsibilities.




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Organizations should not only meet all local, state, andfederal laws and regulatory requirements, but theyshould treat these and related requirements asopportunities for improvement ―beyond mere

compliance.‖ Highly ethical conduct should be arequirement of and should be monitored by theorganization’s governance body. Practicing goodcitizenship refers to leadership and support — within thelimits of an organization’s resources — of publiclyimportant purposes. Managing social responsibilityrequires the use of appropriate measures and leadershipresponsibility for those measures.




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Focus on results and creating value

An organization’s performance measurements need to focus on

key results. Results should be used to create and balance value

for your key stakeholders — customers, employees, stockholders,

suppliers and partners, the public, and the community. By

creating value for your key stakeholders, your organization builds loyalty and contributes to growing the economy.

The use of a balanced composite of leading and lagging

performance measures offers an effective means to

communicate short- and longer-term priorities, monitor actual

performance, and provide a clear basis for improving results.

C V l & C t



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Core Values & Concepts ….Systems perspective

The RBNQA Criteria provide a systems perspective for

managing your organization and its key processes to achieve

results — performance excellence. The seven RBNQA

Categories and the Core Values form the building blocks and

the integrating mechanism for the system. However, successfulmanagement of overall performance requires organization

specific synthesis, alignment, and integration.

Synthesis: looking at your organization as a whole and building upon key

business requirements, including your strategic objectives and action

plans.Alignment: using the key linkages among requirements given in the

RBNQA Categories to ensure consistency of plans, processes, measures,

and actions.




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Systems perspective

These concepts are depicted in the RBNQA framework. A

systems perspective includes your senior leaders’ focus on

strategic directions and on your customers. It means that your

senior leaders monitor, respond to, and manage performance

based on your business results. A systems perspective alsoincludes using your measures, indicators, and organizational

knowledge to build your key strategies. It means linking these

strategies with your key processes and aligning your resources

to improve overall performance and satisfy customers. Thus, a

systems perspective means managing your whole organization,as well as its components, to achieve success.



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RBNQA

• SCOPE

• 7 Criteria

• 19 Criterion Parts

• 229 Areas to Address



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RBNQA -- Business Excellence

Leadership

Organizational leadership

What Excellent organizations do?

Build a strong leadership team that is not dependent upon any

one individual.

Clearly communicate the vision, mission, and values, using

plain language – not buzzwords.

Employ a thorough system of governance to make sure laws,

rules and organizational values are followed consistently.



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Leadership



Set stretch goals to improve performance in areas of public

health and environmental protection.

Go beyond mandated performance levels in ethics, public

safety, environmental, and other areas of regulation.

Allocate significant resources for activities that relate to

corporate citizenship, and educational, community, charity, and

professional organizations.



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Strategic planning

Strategy development


Complete a thorough situation analysis that looks at strengths,

weaknesses, opportunities, and threats, using a systematic

model.

Write annual and longer-term strategic plans in 1 to 2 months

with minimal drafts.Focus the planning process on strategic thinking, rather than

creating a binder.



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Strategic planning

Strategy deployment

What Excellent organizations do?·

Identify key success factors that differentiate your organization

from key competitions.·

Set measurable targets for each measure of performance, based

upon relevant data (e.g. competitors, resources, customer needs,

etc)·Define specific strategies or action plans for hitting targets.



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Customer & Market FocusCustomer & Market knowledge


Clearly identify customers and segment them by market,

geography, or other categories.

Use a variety of methods to identify customer requirements

and priorities.

Continuously evaluate and improve methods to determinecustomer requirements.



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Customer & Market Focus

Customer relationship & satisfaction


Hire the best and brightest customer contact people. Pay them

well, thoroughly train them. And give them authority to solve

customer problems without checking with management.·

Define measurable service standards and measure

performance against them.·Provide toll-free help lines or conveniences to make it easy to

get information.



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Measurement & Analysis of organizational performance


Develop measures linked to their vision or strategy, as well as

overall mission.·

Keep the no of metrics that any manager or executive reviews

to no more than 20.·

Include a balance of measures that focus on the past, presentand future, and that relate to the needs of shareholders/owners,

customers, and employees.



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Information & Knowledge Management


Communicate up-to-date performance data using consistent

graphics and formats across the organization.

Use the best custom designed or packaged score card software

on the market to communicate performance data.

Make use of organization intranet sites or other appropriatemethods to communicate real-time performance data to all

necessary personnel.



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Human Resource FocusWork Systems


Design jobs and organizational structure to promote

cooperation, initiative, and behavior consistent with the values

or culture of the organization.·

Make use of the innovative and effective recognition and

compensation programs to drive loyalty and high performance

from employees.Thoroughly screen potential new hires and candidates for

promotions for appropriate knowledge/skills, as well as values

that are consistent with the culture.



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Human Resource FocusEmployee learning & Motivation

What Excellent organizations do?Invest up to 5% of payroll costs on training each year.

Perform systematic need analysis to determine training needs

for all employees.

Develop curriculums for all key functions/positions.



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Human Resource Focus

Employee well-being & satisfaction

What Excellent organizations do?Focus on delighting employees rather than simply satisfying

them.

Establish goals for safety and employee satisfaction based on

world-class companies.Implement a prevention based approach to safety and

employee health. .



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Process management

Value Creation Processes

What Excellent organizations do?·Define and document the key work processes involved in

designing and producing the organization’s products and/or

services.·

Identify key requirements for each of the processes throughresearch and analysis of customer requirements

Develop and track process measures and standards that link

back to important outcome measures..



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Process management

Support Processes

What Excellent organizations do?·Identify and document major support processes.·

Define internal customer requirements for support processes.·

Establish process measures and service standards and monitor

performance against those standards.



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Business results

Customer focused Results

Product & service Results

Financial & market ResultsHuman resource Results

Organizational effectiveness Results

Governance & Social responsibility Results

IMC Ramakrishna Bajaj National



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Quality Award

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Business Excellence Lecture

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