Creating Sustainable Change

From Strategy Formulation to
Execution
An Integrated Strategy Management Approach

PRESENTED TO: PRESENTED BY:
Naveen Narayanan
JMD | SSA Business Solutions

21st Feb 2012, Cape Town

Tuesday, February 21, 12

FIRST OFF: WHAT IS STRATEGY?


SOME INTERESTING FACTS

- 90% of well-formulated strategies fail due to
poor execution
- 85% percent of management teams spend less
than one-hour a month on strategy issues
- 92% of organizations do not report on lead
performance indicators
- 60% of typical organizations do not link their
strategic priorities to their budget
- 70% of middle managers and more than 90% of
front-line employees have compensation that is
not linked to the strategy
- Most devastating, 95% of employees do not
understand their organization's strategy

Source: "The Shocking Stats On Why Strategy Execution Fails." Total Performance Excellence | Performance
Excellence. Web. 19 Feb. 2012. <http://www.sixdisciplines.com/_blog/The_Six_Disciplines_Blog/post/
Why_Strategy_Execution_Fails/>.


Putting it in Context:
Present State of CI/
Excellence Initiatives


NEED OF THE HOUR

PROCESS EXCELLENCE PEOPLE ENROLLMENT
CONTINUAL IMPROVEMENT | FACT
EVERYONE COMMITTED &
BASED MANAGEMENT
INVOLVED | PROACTIVE PROBLEM
SOLVING

NEED OF THE HOUR

OPERATIONAL EFFICIENCY
WASTE ELIMINATION REDUCE COST | IMPROVE EFFICIENCY
REDUCE PROFIT LEAKAGE |
ENHANCE EFFICIENCY


TYPICAL CI INITIATIVES

7 QC Tools Quality Circles Six Sigma

5‘S’ Daily Work Management TPM

ALIGNED WITH STRATEGY? | ARE THEY SUSTAINABLE?


TYPICAL DEPLOYMENT MODEL

PILOT SCALE UP SUSTAIN

PILOT WAVE SCALE-UP INTERNALIZE
(6 MONTHS) (1 YEAR) (3 YEARS)

- CREATE BUZZ - COMPANY-WIDE ROLLOUT - INTERNALIZE KNOWLEDGE
- PROJECT REPOSITORY - SUPPORT FUNCTIONS - INTERNAL MBBs
- LEADERSHIP BUY-IN - FINANCIAL FOCUS - ALIGN WITH BUSINESS
PLANNING


But What Really
Happens?


UNSUSTAINABLE SUCCESS

Peak

Launch Decline
Success story / scale up

Internal Resistance


AND WHY THEY FAIL?

Web

Hype Not Linked with Vague ₹ Gains Limited Tool Obsession
Strategy Leadership
‣ Not piloting first ‣ Project gains not Support ‣ Obsession to apply
‣ Big-Bang rollout
‣ Project not linked ratified by CFO every possible
with strategy ‣ Champions not tool/software etc.
‣ Black belts involved at early
‣ Charters not claiming
‣ Tools ahead of
ratified by stages business result
unrealistic
champions savings/
‣ Leaders not
improvements Trained/certified
‣ Lack of Employee
Engagement &
support


The Execution
Challenge


THE EXECUTION CHALLENGE

SENIOR LEADERSHIP TEAM
STRATEGY/GOALS | BUSINESS
PERFORMANCE METRICS

BUSINESS EXCELLENCE TEAM
LINE STAFF
CONTINUOUS IMPROVEMENT |
DAILY FIREFIGHTING | WASTE ELIMINATION
CUSTOMER MANAGEMENT


THE EXECUTION CHALLENGE

SENIOR LEADERSHIP TEAM
STRATEGY/GOALS | BUSINESS
PERFORMANCE METRICS

BUSINESS EXCELLENCE TEAM
LINE STAFF
EXECUTION?
CONTINUOUS IMPROVEMENT |
DAILY FIREFIGHTING | WASTE ELIMINATION
CUSTOMER MANAGEMENT


SUSTAINING THE CI INITIATIVE

‣ Improvement initiatives
(Six Sigma, Lean, etc.)
not aligned with corporate
objectives and goals
‣ Bottom-up instead of top-
down initiatives
‣ Project pipeline dries up
over time
‣ Unable to sustain benefits
over time


Solving The Execution
Riddle


INTEGRATED STRATEGY MANAGEMENT

‣ ISM: INTEGRATED STRATEGY
MANAGEMENT SYSTEM
✓ Visioning & Strategizing
✓ Program Management
✓ Project Management
✓ Process Management
✓ Performance Management

“ISM® aligns people and the processes with the corporate objectives and goals”
- NC


1. VISIONING & STRATEGIZING

‣ Objective: Institutionalize the
annual planning & improvement
projects as an integrated
management system
‣ Deliverables:
✓ Strategy workshop
✓ Strategy Management Structure
✓ Project Repository
✓ KPI Monitoring System


2. PROGRAM MANAGEMENT

‣ Objective: Create framework for
translating boardroom strategies
into implemented solutions
‣ Deliverables:
✓ Team Formation
✓ Project Linkages w/ Strategy
✓ Governance Structure
✓ Belt training (YB, GB, BB, MBB)
✓ Automated Project Management


3. PROJECT MANAGEMENT

‣ Objective: to ensure industry best
practices are adhered to during
project execution and roadblocks
if any are removed in a timely
manner
‣ Deliverables:
✓ Handholding of teams for execution
✓ Project/account management
✓ Enterprise-wide knowledge
repository creation


4. PROCESS MANAGEMENT

‣ Objective: to create and
standardize robust business
processes, which have the ability
to meet the customer commitments
consistently
‣ Deliverables:
✓ Enterprise-wide process repository
✓ Adoption of international standards
9001/27001 etc.
✓ Process Audits & Improvement
✓ Process KPI monitoring &
improvement


5. PERFORMANCE MANAGEMENT

‣ Objective: to identify and monitor
organizational KPIs and drill them
down into department and
employee level KPI
‣ Deliverables:
✓ KPI identification from strategic
objective
✓ Drill-down KPIs to grass root level
✓ Data capture system to track KPIs
✓ Automation of performance
monitoring


ISM STRUCTURE
Strategy
Committee

Focus Group Focus Group KPI Secretary to
Focus Group Focus Group
Internalization & Development & Strategy
Project Mgmt Process Mgmt
Communication KRA / KRG Committee

Master Black Second Layer
Belts Group (SLG)

HRM
Co-opted
PEx

Communication
SLG

Consultants
(SSA)
!


30,000 FT. VIEW

ANNUAL GOAL
SETTING DEPARTMENT STRATEGY
- OWNED BY ‘PERFORMANCE BUSINESS VERTICAL PLAN
FOCUS GROUP’ LEADER STRATEGY PLAN (BVSP)
- OVERALL BUSINESS - OWNED BY DEPARTMENT
PERFORMANCE ANALYSIS - OWNED BY ‘BVSP’ LEADER HEADS
- GOAL SETTING, STRATEGIC - DRILL-DOWN CORPORATE GOALS TO - DRILL-DOWN BVSP TO
BUSINESS VERTICAL LEVEL GOALS DEPARTMENT LEVEL GOALS
THEMES & OBJECTIVES
- DRILL-DOWN TO BUSINESS - STRATEGIC THEMES OBJECTIVES & - STRATEGIC THEMES,
INITIATIVES OBJECTIVES & INITIATIVES
VERTICAL &
DEPARTMENTAL STRATEGY - INTEGRATION OF DSP W/ BVSP
PLANS


30,000 FT. VIEW

EXTERNAL INTERNAL CUSTOMER POLICY DEPLOYMENT
CUSTOMER SURVEY
EXTERNAL SURVEY
INTERNAL CUSTOMER - KRA LINKAGE WITH STRATEGIC
POLICY DEPLOYMENT
-CUSTOMERSURVEY
ANNUAL CSAT SURVEY - ANNUAL INTER-DEPARTMENTAL
SURVEY - INITIATIVES WITH STRATEGIC
KRA LINKAGE
- ANNUAL CSAT SURVEY
- DRILL-DOWN CUSTOMER - SURVEY INTER-DEPARTMENTAL
ANNUAL - INITIATIVES
PERFORMANCE OF PROJECTS
- DRILL-DOWN CUSTOMER
VOICE INTO IMPROVEMENT - SURVEY
IMPROVEMENT PROJECTS
- PERFORMANCE OF PROJECTS
REVIEWED BY PROJECT FOCUS
VOICE INTO IMPROVEMENT - IMPROVEMENT PROJECTS REVIEWED BY PROJECT FOCUS
GROUP
INITIATIVES IDENTIFIED BASED ON SURVEY
INITIATIVES IDENTIFIED BASED ON SURVEY GROUP


GOVERNANCE

PROJECT MANAGEMENT PROCESS MANAGEMENT PERFORMANCE REVIEW
- ROBUST PROJECT - ORGANIZATION WIDE - OVERALL PERFORMANCE
PIPELINE BASED ON CSAT, PROCESS REPOSITORY EVALUATED ANNUALLY
DEPARTMENT PROBLEMS, - IMPLEMENTATION OF KPI
BUSINESS VERTICAL
- STRATEGY PLANNING
- PROCESS AUDITS HELD AT BEGINNING OF
GOALS YEAR
- CHAMPION LEVEL - REPORT PERFORMANCE
OWNERSHIP TO STRATEGY COMMITTEE - ONLINE KPI TRACKING &
MONITORING
- LINKAGE TO KRA
- ROBUST MONITORING
MECHANISMS


ISM Best Practices


TOP DOWN PROJECT SELECTION

MISSION: “A Great Place to Work”
VISION:
“Role Model for Environmental, Health, & Safety Performance”
“Consistently Most Proﬁtable, and Reliable Reﬁnery”
“Market Responsive”

STRATEGIC THEMES:
1) Environment & Safety Performance
2) Market Responsive/ Customer Focus
3) Resource Optimization
4) Great Place to Work

STRATEGIC INITIATIVES:
1) Six Sigma Projects
2) Other Strategic Projects
3) People & Process Alignment


PROJECT SELECTION: AN EXAMPLE

MISSION:
“A GREAT PLACE TO WORK”

REFINERY VISION:
ROLE MODEL FOR EHS | CONSISTENTLY MOST PROFITABLE AND RELIABLE REFINERY | MARKET RESPONSIVE

ENVIRONMENT & MARKET
RESOURCE GREAT PLACE TO
SAFETY RESPONSIVE/
OPTIMIZATION WORK
PERFORMANCE CUSTOMER FOCUS

✓ Improve Reliability of ✓ Bitumen Lorry TAT < ✓ Maintain FO line ✓ Reduce Wastage in
Fire Extinguishers 2hr. sample viscosity Canteen
✓ Bring Down Number of ✓ Product Availability for
between 150-180 ✓ Minimize complaints in
Fires MMPL ✓ Increase Power estate
✓ Biturox Production (All
Reliability ✓ Increase number of
3 Grades Availability) ✓ Minimize variation in suggestions
✓ Minimize fill weight
LPG Filling ✓ Minimize electricity
variation of LPG ✓ Sustain Yield as per consumption in estate
✓ Minimize losses during
VDU Column ✓ Optimize overtime in
ATF production ✓ Reducing Tankage TAT canteen
✓ Minimizing Crude Loss


PROJECT HOPPER

3
‣ Align LSS with annual
strategy planning/Balanced
2 4 1 Scorecard
Projects based on data and
5
‣
Business Intelligence
‣ Monthly steering committee
meetings to review progress/
identify projects
‣ Customer voice as a source of
projects
‣ Linkages with KRA


IN SUMMARY

Performance Management: Strategy Planning: Strategy
Customer Touchpoint Analysis, KPI workshop, Strategy Management
drill-down, Dashboard Creation, Structure, Project Repository, KPI
KRA/KRG Linkages, KPI Monitoring Monitoring Structure

Program Management: Team
Selection, Governance Structure,
Project Linkage w/ Strategic
Objectives, Continuous Improvement
Process Management: Process Structure
Mapping, Process Repository,
Process Monitoring Metrics,
Change Management System Project Management: Clearly
Defined Goals, Project Monitoring/
Tracking, Process Documentation


TO SUM IT UP


A bout SSA


ABOUT US


PURPOSE & VISION

Purpose:
To enhance Stakeholder’s Value through partnering for growth; our
journey will continue as long as there is a passion for perfection.

Vision:
To become the No.1 Business excellence solutions provider in India
by 2015 with 20% revenue from overseas consulting.


HISTORY

1999 2001 2006 2011

Six Sigma Alchemy®(P) Ltd.
Business Excellence Enablers

SSA IS BORN MANAGEMENT SYSTEMS PROCESS EXCELLENCE STRATEGIC ALIGNMENT

- BORN WITH A - ISO 9001, QS 9000, ISO - ENTERPRISE-WIDE - INTEGRATED STRATEGY
MISSIONARY ZEAL 14000, ISO 27001 PROCESS MODELING & PERFORMANCE
- PROCESS REPOSITORY MANAGEMENT SYSTEM
- VISION: ‘MAKE MADE IN - HRMS
INDIA SYNONYMOUS TO CREATION
- BPMS
QUALITY’ - KPI DASHBOARDS
- SIX SIGMA
- LEAN DEPLOYMENT
- GLOBAL ALLIANCES
- GLOBAL DEPLOYMENTS


ACCREDITATIONS

RATED SE-2A BY CRISIL | HIGH PERFORMANCE
CAPABILITY HIGH FINANCIAL STRENGTH

ISO 9001 CERTIFIED

ANSI IACET 1-2007 ISO 27001 ISMS CERTIFIED
AUTHORIZED PROVIDER


SELECT CLIENTELE


GLOBAL REACH


BASKET OF OFFERING

Lean Six Sigma
IT & ITES Support Lean Management

Performance Management BPMS Solutions

Design for Six Sigma (DFSS) TPM

Project Management ISO/ISMS/EMS/OHSAS

Daily Work Management Process Simulation


Thank You!


Creating Sustainable Change

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