World Class. Early 1990s-Opening of economy Slogans of Globalization: Export or Parish World Class...
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Transcript of World Class. Early 1990s-Opening of economy Slogans of Globalization: Export or Parish World Class...
Early 1990s-Opening of economySlogans of Globalization:
Export or ParishWorld ClassQuality of Products and ServicesCustomer Satisfaction
After more than decade now…Let us take a stock on World Class
VisionWhere we want to be when
Vision statement
Framed at reception/DeskGuiding force vs wishful statementsVision can easily go haywire
Still every organization have to have oneWhy?
“If you have no clear direction,it is tough to know or care if you areheading where you want to go”
Required even if there is no globalization
Most important purpose of vision:Everyone knows what need to be doneto achieved the goal
Decision making and control is not required
Why Vision
Strategy
In a competitive environment:
Some companies are loosing market share -Others are gaining it
Some are doing well-Others are bleeding to death
Some companies redefine industry-Others just follow blindly
Answer lie mainly in strategic framework
Strategy played an important role
What is a strategy?
Usual definition-Relationship between the companyand its competitive environment
Allocation of investments betweenvarious opportunities
Long term prospective requiringinvestments and commitments
Strategy
New concept:
The strategy is for a company to effectively balancebetween its resources and the opportunities
It means:
Resource allocation is a strategic task in pursuit ofstrategic objectives and march towards worldleadership in those objectives
Task to be very focussed with all out aggressivenessand stretch
Strategy
New Definition:
Allocation of minimum resources as well asenergizing them to get required productivityout of them
Resources:
Money, machine or manpower
Technology, Space
Strategy
ProductivityMan, money, machine
Productivity of Technology Productivity of technology as a competitive edge-
Otherwise bleed to deathSmaller companies are better suited
Productivity of SpaceVirtual work4 people running business
World class productivity does not mean maximumoutput from the available inputsBut...World class productivity mean getting the requiredoutput with minimum inputs
World-class TeamsWorld-class companies builtworld-class teams
A company to have a vision and every one to worktowards it is not possible, unless walls between crossfunctional teams are broken down
World class products and services require worldclass processes to deliver them
These products and services are dependent on peoplewho produce them
Therefore, the focus gets turned on the world classteams
Let’s look at three models of teams
Conventional Team High Performance Team World Class Team
Can’t be done What will it take to do Let’s get on with it
Not my/our job How can I/We help? I/We will do it
Predictive tasks are ok Possible tasks are ok Leading edge tasks are ok
Change resisted Change accepted Change welcome
Conventional Team High Performance Team World Class Team
Telling Supporting Coaching
Control Delegation Empowerment
Manager Facilitator Coach
Leadership of those teams
World-class companies thrive for world-classquality with right processes in place
Without world-class processes, hoping forquality products and services is like tryingto make a radio without know A-B-C of electronics
When you have best processes in place, youare bound to get best outputs- It is like mistakeproofing
World-class Processes
Once again processes need not be limited tomanufacturing processes-It means process ofwhatever we do
When we are talking about world-class products,we are talking about defect rates of world-classstandards- Let it be typing, preparationof purchase orders or preparation of cheques
World-class Processes
Today, world-class companies have reachedquality standard of four sigma level. Whichmeans 63 defects per million operations (0.0063%)
Companies like Motorola and GE have kept theirtargets of process defects of 6 Sigma level whichmeans 0.002 defects per million (0.000002 %)
Today, in India, text books are still talking of5%-19%-20% in their examples- management schools- future managers-Sad state of affairs
World-class Processes
Some of the world-class processes:
Just in time (JIT)Single piece flow(SPF)Quality at SourceStatistical Quality Control(SQC)Statistical Process Control(SPC)Quality to built-inQuality to design-inValue engineeringRe-engineeringContinuous training (Education)
World-class Processes
The information technology revolutionsince the invention of microprocessoralmost four decades back
A company can not become world-class orglobal player, unless it embraces IT as one of themeans of achieving world standard of quality,productivity, service and customer satisfaction
Information Technology (IT)
IT came in as a tool to automate some of the repetitiveoperations:
Typing, calculation of figure,management of material procurement andmanagement of financial resources
Today, IT provides packages for enterprise resourcemanagement by linking field marketing with factoryand its suppliers
Information Technology (IT)
The whole process of business cycle of orderbooking to quality manufacturing to collection,flows thru computer system
The latest status is available to everyone inthe business cycle and appropriate actionsat right time are taken for enhancement ofresource productivity
Information Technology (IT)
In today’s world, with internet facility, even a faraway customer can track his/her order thrusuppliers’ computer systems
The difference in time of the day around the globehas lost its relevance as the customer can log onto the suppliers’ computer systems and lodge acomplaint or see the status of the job without humanintervention
With the introduction of e-commerce, the completecycle of order placing to payments can be donethru internet
Information Technology (IT)
Web sites where customers areable to see in and out of the products fromvarious angles on their monitors, at thecomforts of their homes, before orderingexactly what they want. Whether it is a particularcolor of the car or power steering.
IT/Internet has become an integral part of manyorganizations
Information Technology (IT)
World-class organization adopt TQMculture as basis for their businesstransactions
Culture is tacit understanding ofrules( often un-written) for doingevery thing in an organization
Process of change is very slow asold cultures are difficult to die
But today, organizations don’t have any choicebut to change
TQM
TQM
Basically TQM is customersatisfaction thru employee involvementand continuous improvements
Customer attention is focus
Each and every one has a customer-Internal/external ( receiver of out-put)
Purchase ProductionProduction Quality
and so on
When work flow chart of the organizationis drawn and displayed at central location,the customer-supplier relationship becomescrystal clear to every one
Internal Customer
ISOSince last decade, customers demands fordealing with companies who are approvedby International Standards Organization(ISO)
Trend started with foreign customers but today,most of the Indian customers are insisting on ISOas a minimum requirement
This standard is continuously evolving and todayit insists on societal and environmental protection
Therefore, it is not enough to have ISO approval forsystems and monitoring norms but continuouslyimprove upon internal systems not only for theconsideration of the customers but society as a whole
Although there can be many more attributes for aworld-class
One most important factor is to have world-class ChiefExecutive Officer (CEO)
Without world class CEO the march towards world-classwill be short lived or just a wishful thinking
As mentioned earlier, world-class CEO is:A coachempowers peopleEveryone is important, however small or big
Chief Executive Officer (CEO)
Like for a living body to work smoothly eachand every organ or part is important, similarlyeach and every resource is important fororganization, even though each plays differentrole
CEO continues to nurture the organization andacts a leader who inspires rather than a managerwho tells what to do
He/she conveys the message clearly and thruactions rather than rules
In general, cultures are built on trust and allto follow
CEO
World-class companies have:
Vision for everyone to know the pathStrategy to know how and when to get thereTeam that clicksWorld-class processes in place for
everyone to followMost efficient operation thru state of art
information technologiesTQM CultureApprovals from world standards organization
and World-class CEO
Summary