1. Institutionalized Excellence
Need
E.g. NTPC
Mission, Vision of Excellence, Core Values
Management Style
Policy Framework
Management Systems and Structures
Renewal Mechanisms

2. Institutionalized Excellence –NEED
Competitive pressures and government dominance often
threatens to politicize and bureaucratize the larger
organizations especially those dependent on government
for funds or owned by it.
For such organizations changes of chief executives are
frequent and top level management continuity is weak.
So what can be done to prevent deterioration? The answer
is Institution Building
If the organization internalizes norms of excellent
functioning, it may continue to function well despite weak
competitive pressures and an adverse control environment.

3. Institutionalized Excellence - NTPC
National Thermal Power Corporation of India is a good
example of how institutionalized excellence can be achieved.
It was set up in mid-seventies by the Government of India.
Between 1982 and 1990 NTPC increased its power
generating capacity nearly ten times.
Throughout the eighties NTPC was profitable and its profits
in 1989-90 were over 100 times its profits in 1982-83.
In comparison, most of the electricity boards owned by
various state or provincial governments in India made
losses during the eighties.
Most of the projects were commissioned as per schedule
and within budgeted expenditures.
In the late eighties, NTPC had also ventured into the
setting up of sophisticated gas-based power stations.

4. Institutionalized Excellence - NTPC
NTPC was able to achieve an outstanding track record
because it institutionalized a strongly result-oriented work
culture.
It had gone for the best technology. It had developed a strong
in-house engineering capability. It recruited many young
engineers on the basis of objective tests and put them
through an intensive orientation programme.
It had invested heavily in human resource development
through training and job rotation.
It had diversified the sources of its finance.
It had institutionalized a vigorous quality assurance
programme and competent project management.
It had got installed a comprehensive management planning
and control system.
It practiced participative management.
And despite its relative youth, it had undergone several
reorganization studies.

5. Mission, Vision of Excellence, Core Values
In Third world conditions, institutionalization of excellence
is easier if it is restricted to a few key performance indicators.
Hence, like competitive excellence, it is best to adopt one
or few missions that are specific and local.
However to acquire a high social and internal standing for
an organization it should internalize a wider set of core
values.
Wider social concerns such as socio-economic development.
Wider human concerns such as for justice, nurturance,
autonomy and self-actualization.
Similarly the vision of excellence needs to extend beyond
critical performance indicators to one of excellent quality

6. Management Style
- The professional-altruistic-participative style can
ensure the institutionalization of those values and
norms that internally and externally earn the organization
the status of an excellent institution.
- Values such as systematic, expertise-based, planned
decision making, ethical internal and external behavior,
commitment to ideals, concern for human resources, and
participative, reasonably democratic decision making.
-

7. Policy Framework
- policy of offering novel and/or high quality
products/services, market orientation, team decision
making, paternalism, human resource development
emphasis, emphasis on persuasion rather than power
in dealing with the staff, decentralization through a
management by exception policy, and recruitment of
innovative and young professionals constitute an
effective policy framework for pursuing institutionalized,
long-term excellence.

8. Management Systems and Structures
-Institutionalized excellence is facilitated by
comprehensive, sophisticated ‘professional
management’ systems, complex differentiation and
complex integration.
Renewal Mechanisms
-Institutionalization can go too far and institutionalized
systems, practices, and norms can create a straitjacket
for the organization.
- Periodic reorganization studies can strengthen double
loop learning, exnovation, survey feedback, SWOT,
long range forecasting and scenario building are some
of the mechanisms that can foster institutionalised
excellence.