FINAL Presentation on Expanding Consultancy Business by ing Competitive

8/8/2019 FINAL Presentation on Expanding Consultancy Business by ing Competitive

1/30

Expanding Consultancy BusinessExpanding Consultancy Business

by Remaining Competitiveby Remaining Competitive

A Presentation Under

Change Management Initiative


2/30

Expanding Consultancy BusinessExpanding Consultancy Business

by Remaining Competitiveby Remaining Competitive

A Presentation Under

Change Management Initiative


3/30

3

CONSULTANCY BUSINESSCONSULTANCY BUSINESS

The Genesis:

Consultancy Wing was formed through an Office Order issued by CMD,NTPC on September 11th, 1989 :

To make available NTPCs experience and expertise in Power

Sector, to other organization in India and abroad

As a Brand building exercise in Foreign Market for being anInternational Organization

A National Obligation in Domestic Market


4/30

4

Original Thoughts visOriginal Thoughts vis----visvisPosition TodayPosition Today

Thrust area for business

Lacks Thrust

A profit center with effective control of its functions

Target set is not backed up by support staff & resources

Minimise cost, maximize profit

Bogged down byHigh cost & Overheads

Avoid cumbersome procedure to ensure speed

Following the same procedure as OWNER NTPC.

New DOP, to synchronize the RESPONSIBILITYwith AUTHORITY

Current DOPnotin syncwith requirement

A paradigm shift : from OWNERNTPC to CONTRACTORNTPC

Owner mind-set pervades


5/30

5

NTPC CommissionedNTPC Commissioned

Change Management InitiativeChange Management Initiative

Skyis the Limit

How to Expand ConsultancyHow to Expand Consultancy

BusinessBusinessby remaining Competitiveby remaining Competitive


6/30

6

TEAM MEMBERSTEAM MEMBERS

Sh. M S Chawla(Leader)

GM(CW-Intl Cell)

PrabhatPrabhat KumarKumar

AGM(O&M/AGM(O&M/DadriDadri Gas)Gas)

Rajeev KumarRajeev Kumar

AGM (CWAGM (CW--EnggEngg))

S KS K MundMundDGM (CWDGM (CW--Intl Cell)Intl Cell)

U K BhattacharyaU K Bhattacharya

DGM (CWDGM (CW--Intl Cell)Intl Cell)

V N JainV N Jain

DGM (FinDGM (Fin--IA)IA)

GautamGautam VivekVivek

DGM (CPDGM (CP--WEC)WEC)


7/30

7

Logical flow used by the Team..Logical flow used by the Team..

Problem

Identification

Situation

AnalysisAlternatives &


8/30

8

Process Followed by the Team..

Articulate VISION for Consultancy

SWOT Analysis ofNTPC Consultancy, Review Service Offerings

Study a few Successful Consulting Organizations

Discussion with Ex-CMDs ofNTPC

Market Identification, Segmentation, Positioning

Analysis Process, Cost Sheet Templates, Inputs

Look at the Current Delegation of Power

Prospects ofExpanding Business, Resources Budgeting

RiskAssessment & Mitigation and Pricing Policy for Competitiveness


9/30

9

To be Worlds Most PreferredTo be Worlds Most Preferred

Integrated Energy Service ProviderIntegrated Energy Service Provider


10/30

10

Redefined Objectives for Consultancy

Vehicle for Growth & Development for Employees

Increase Quality presence in International Arena Enhance Brand Equity

CRM tool for core business in India

Emphasis on Growth & Market Presence


11/30

11

Learnings From Ex-CMDs

Mr. A K Sah

Not to be complacent

To remain excellent, keep abreast

of Technological and Managerial

changes.

Select and put the best and right

man

Have closer interaction with

Client to understand their problem

Engage local agents for overseas

business.

Total business attitude

Structural Change is needed

Flexibility in approach

Mr. P S Bami

CW for Enhance Business Activity

Consultancy helps Branding Building

Stress on Marginal Costing

Open up Foreign Offices, use IndianEmbassy for office space/identity

Revise Costing Procedure, reconsider

charging NTPC Overhead

Engage Retired People

Appoint Local Agent for info, lobby

Ensure Availability of Resources


12/30

12

STUDY OF A FEW SUCCESSFULSTUDY OF A FEW SUCCESSFUL

CONSULTING ORGANIZATIONSCONSULTING ORGANIZATIONS

MOTT MacDonald

TCE

Fluor Corporation

Bechtel

Shell Global Solutions


13/30

13

Learning From Other Organisations

Differentiate Offerings High Brand Equity Secures Job through Nomination

Global Databank, K M System, Strong IT tools & Process Automation are

Key

Have defined Risk Assessment System

Continuous Investment for Developing Expertise

Full Empowerment of Project Manager & Site Staff to Hire or Sub-

Contract

Proposal Team prepares bid; Proposal Manager made Project Manager

Have either Direct Presence or Agent in Focus Market

Fully Focused; Link Resource Planning to Business Plan

Do not outsource major part or core activity; Big global consultants take up

jobs where >70% contribution is by them


14/30

14

Market Analysis

Revise Focus country list

Customer Need Analysis

Competition Analysis

Identification of Vacant Space & Positioning

Segmenting Domestic Market

Market Strategy


15/30

15

Customer Expectations

Best Price

Best People

Fast Service

Complete Solutions

Competition Analysis ~ Domestic

DCPL

TCEDesein

Mott

Lahmeyer

Engg. Conslt.

Engg. ConsltEngg. Conslt.

Engg. Conslt.

Engg. Conslt.

Low Price

MediumLow Price

Medium

Medium

Market Analysis


16/30

16

Competition Analysis (Overseas)

DCPL

Bechtel

FlourCorporation

Tractabel

Lahmeyer GMBHFichtener

SNC Lavallin

PB Power

Mott MacDonald

Electrowatt

Saud Consult

International Power

Engg. / O&M.

Engg. Conslt

Engg. Conslt.

Engg./O&M.

Engg./ Mgmt.Engg. Conslt.

Engg./O&M

Engg. Conslt.

Engg. / Mgmt.

Engg. Conslt.

Engg. Conslt.

O&M/Mgmt.

Low Price

Premium

Premium

Medium

Med to PremiumPremium

Medium

Medium

Medium to

PremiumLow

Low

Medium

Cartelisation of Existing Players in International Market is a big

entry Barrier for new entrants like NTPC

Market Analysis .contd


17/30

17

CONSULTANCY BUSINESSCONSULTANCY BUSINESS

VACANT SPACE ANALYSIS

O&M

ServicesEngg.

Services

R&M

Services

Mngmt

Consultancy

Vacant

Very few organisations in

the world provide all theservices.

POSITIONING STATEMENT

Provides Complete SolutionsFrom Concept to Commissioning andBeyond,at Affordable Prices

Vacant Space & NTPCs Positioning


18/30

18

Power

Advisory

ProjectFormulation

EngineeringServices

O&M

ProjectManagement

TrainingServices

InfrastructureAdvisory

ManagementConsultancy

EnvironmentManagementAdvisory

KnowledgeProcess

Outsourcing

REVISED SERVICE OFFERINGS


19/30

19

REVISED SERVICE OFFERINGS

Market Analysis.


20/30

20

NTPC in Domestic Market

Dominant Position

NTPC is invited to extend Services

NTPC must provide Quality Services to capitalise this situation, for repeat

Orders

Need for Segmentation and Focus

Decide Separate Marketing strategy for Private sector and PSU / SEBs


21/30


22/30

22

Market Identification ..contd

Revised list of Focus Countries Ten (10)

DISHA PROPOSED

Saudi Arabia

UAE

Indonesia

Sri Lanka

Egypt

Malaysia

Thailand

Vietnam

Bahrain

Jordan

Iran

Saudi Arabia

UAE

Indonesia

Sri Lanka

Oman

Qatar

Bangladesh

Nigeria

Kenya

Singapore


23/30

23

HOW TO EXPAND

BUSINESS ?

HOW TO BE

COMPETITIVE ?


24/30

2

4

HOW TO EXPAND BUSINESS ?HOW TO EXPAND BUSINESS ?

CONSTRAINTS

Lack ofResources

Lack of International Presence& Network

LowBrand Equity(Overseas)

Internal Image Problem Generalapathy towards

Consultancy

PROPOSED SOLUTIONS

Linking Resource to AnnualBusiness Plan

Pro-active Marketing Reach out to

Customer

Emphasis on Growth than on Profit

Creating EnterprisewideDatabase -

Strong Knowledge Mgmt. System

Investment forBranding Building:Attend

Global meets,Tradeshows, Showcase

Competence through Free Service

Address Employees Concern


25/30

25

HOW TO BE COMPETITIVE?HOW TO BE COMPETITIVE?

CONSTRAINTS

High Cost (Input x Rate) : Padded

inputs, high rate

VeryLimitedpast data: No Marketing

intelligence

ConservativeApproach : LowRiskAppetite

Delayin Decision : LowDelegation,Cumbersome Process

In-Flexibleapproach

PROPOSED SOLUTIONS

Reduceexcessinput: Standarization,

Employee Buy-in

ReduceRate : Selectivelyadopt

Marginalcosting,reduce Overheads,

decidebid-specific margin

Accept Businessrisk: Introduce Risk

Assessment,stop multiple Contingency

IncreasedDelegation to CWDevelop Marketing intelligence: Visit

Customers, Collect & analyse Past

data,useAgentsforinsideinfo

Align with customerneed


26/30

26

Develop standard inputs for de-padding

Creation of Risk /Contingency Fund to do away withContingency, Liquidated Damages etc. in each bid.

Risk Fund may be created through: Retain NTPC Consultancy Profit till fund is adequate Topping up from % age profits of Consultancy

Wing, from time to time, if required.

Hedge Currency Risk through Forward Cover

Obtain Professional Indemnity Insurance

Additional Life Insurance cover for high risk postings

Risk Mitigation ~Risk Mitigation ~Proposed PolicyProposed Policy


27/30

27

Recommendations

Adopt different Marketing Strategy for each Segment, Appoint Agent

Overseas

Revise Delegation of Power For CW, the buck should stop with HOCW

Commission Service Agreements for Resource commitment

Revise Costing Policy Adopt Marginal costing selectively, Change

Overheads Policy

Standardize Inputs, Develop Multi-Skill through defined Job Rotation

Policy

Incentivise Executives working on CW assignments

Honorarium

Extra Weight in PMS

Use CW posting for job enrichment , Grooming for Succession Planning

Institutionalise a continuous process for Capacity Building


28/30

28

Deliverables & Action Plan

1. Revised Costing Policy

2. Create System to Incentivise EmployeesforCW assignments

3. RevisedDOP forCW

4. Prepare Segment-wise Marketing Strategy

5. Appointment ofsponsorsin overseascountries

6. Standardization of inputs

7. PrepareBusiness Plan based on newcosting policyandResourcecommitment.

8. Preparestandard ServiceAgreementsforFunctionalHeads

andHOCW.


29/30

29

Time Line

A B

S

C

IMPLEMENTATION

D

E

FORMULATION

12Wks 12Wks 12Wks 12Wks 12Wks 12Wks 12Wks 12Wk

s

A: Revised Costing Policy, Revised DOP for CW, Incentive

Scheme

B: Marketing Strategy and Appointment of sponsors in overseas

countries

C: Standardization of inputs

D: Preparation of Service Agreementswith Functional Heads and

Business Plan based on new costing policy.

Finalization


30/30

30

This time like all times is a good one,

if we but know what to do withit.

~ Ralph Waldo Emerson

THANK YOU!

Date post:	10-Apr-2018
Category:	Documents
Upload:	shashi-ranjan-kumar
View:	218 times
Download:	0 times

FINAL Presentation on Expanding Consultancy Business by ing Competitive

Documents