For PMI 23 Feb 2005

ChanGe Management Using Baldrige Business Excellence ModelWith Project Management Approach

G.Jagannathan,Executive Vice President,Tata Consultancy Services Limited

For PMI 23 Feb 2005

Nature of IT business!

Every morning in Africa a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed.

Every morning a lion wakes up. It knows that it must out run the slowest gazelle or it will starve to death.

It doesn’t matter if you are a lion or a gazelle. When the sun comes up you better be running!

For PMI 23 Feb 2005

Need to Accelerate the Rate of Change

When the Rate of Change Outside

Exceeds the Rate of Change Inside,

the End is in Sight - Jack Welch, Ex-CEO, GEC

We Need Radical ChangesWe Need Radical Changes

Breakthrough improvementsBreakthrough improvements

For PMI 23 Feb 2005

Our Vision

Global Top 10 by 2010Global Top 10 by 2010

We set a shared Vision for ourselves as

This called for a major change in the entire organization.

This meant Driving Excellence in all that we do at all levels

For PMI 23 Feb 2005

Who should change?Boss, Subordinate,Family, Friends or I?

Why should I change?Who is the real beneficiary?Organization, Department, Family or I?

What should I change?Attitude, Behaviour or Perceptions?

When should I change?Now or Later?

How should I change??????????????????

For PMI 23 Feb 2005

The Change Model at the Organizational level

After a thorough scrutiny and discussions, the leadership team concluded that we

would use the

Malcolm Baldrige Business Excellence model for driving change in the organization as it was the most

comprehensive

Business Excellence Model.

For PMI 23 Feb 2005

The 3 Phase MBNQA model for Organizational Excellence

BusinessExcellence

Core Values

Approach

Deployment

Results Cat

egor

ies

For PMI 23 Feb 2005

Organizational Excellence

Strategic Leadership

ExecutionExcellence

OrganizationalLearning

Lead the organization

Manage the organization

Improve the organization

For PMI 23 Feb 2005

Criteria of MBNQA

Industry LeadershipIndustry Leadership

Core ValuesCore Values

Core Values…the foundation of Performance Excellence

For PMI 23 Feb 2005

Design Principles

Lead the organization Manage the organization Improve the organization

Strategic Leadership Execution Excellence Organizational Learning

CustomerDriven

Excellence

Focus onResults &Creating

Value

Systems Perspective

Focus on Future

Social Resp.

Visionary Leadership

Agility

ValuingEmployees& Partners

ManagingFor

Innovation

Org. & PersonalLearning

ManagementBy

Fact

Business Excellence Face 1 – Core Values

For PMI 23 Feb 2005

ApproachValues Processes

DeploymentProcesses Practices

ResultsPractices Outcomes

Evalu

ate

&

Imp

rove

Business Excellence Face 2 - ADR

For PMI 23 Feb 2005

SystematicApproach

FullDeployment

Business Results

Evaluation&

Improvement

Business Excellence Face 2- Another Representation

For PMI 23 Feb 2005

Business Excellence Face 3 - Categories

Information & Analysis

Work Core

Driver Triad

H RFocus

StrategicPlanning

BusinessResults

ProcessManagementCustomer &

Market Focus

Leadership

7

5

6

3

4

2

1

For PMI 23 Feb 2005

Baldrige Scoring guidelines

Leadership - 120

Strategy - 85

Customer Focus - 85

Measurement Analysis & KM - 90

HR Focus - 85

Process Management - 85

Ap

pro

ach

+ D

eplo

ymen

t

550

Customer Focused -70

Product & Service -100

Financial & Market -70

HR -70 Org. Effectiveness -70

Governance &Social Responsibility-70

Bu

sin

ess

Res

ult

s

450

For PMI 23 Feb 2005

The Approach to Change Management

• As a first step to change management it was decided to assess

the status of the Organization on the Baldrige Scale.

• A quick self assessment using the Tata Quality Management

Services showed that we were at 400-500 points range out of a

maximum possible 1000 points.

• We also gathered that a Baldrige Award winners were around

650-750 score range.

• It was decided to follow the Project Management Approach to

achieve the desired score range.

• Milestones were set after discussions with World Class

Consultants.

For PMI 23 Feb 2005

Global ImageGlobal Image

Excellent

AverageAverage

Poor

The Journey To Business Excellence

0 – 250: Early Development

251 – 350: Early Results

351 – 450: Early Improvements

451 – 550: Good Performance

551 – 650: Emerging Industry Leader

651 – 750: Industry Leader

751 – 875: Benchmark Leader

876 – 1000: World Class Leader

Good

For PMI 23 Feb 2005

Improvements need to happen at all levels…

Improvements@ company level…

…Requires improvements @ individual levels…

For PMI 23 Feb 2005

Formation of Business Excellence Team (BET)

• The leadership team decided to form an

exclusive team for driving Business

Excellence and appointed an Executive Vice

President to head the BET.

• The team debated and concluded that they

would follow the Project Management

Methodology to drive Excellence in the

organization using the overall MBNQA

Framework

For PMI 23 Feb 2005

Project Management Responsibility

Integration Management

Scope Management

Time Management

Cost Management

Quality Management

Communication Management

HR Management

Risk Management

The BET responsibilities included :

For PMI 23 Feb 2005

Integration Management

• BET was entrusted with the responsibility for ensuring

total Integration of all processes related to Business

Excellence

• The BET members were responsible for specific centres

/ Geographies of the Organization for ensuring full

deployment of all relevant approaches and for

monitoring results using the existing management

structure.

• Business Excellence Councils were formed at the

Corporate and at various locations to ensure Integration

• Integration was achieved using the Balanced Score

card approach for Business results

For PMI 23 Feb 2005

Scope Management

The scope of Business Excellence was defined

Baldrige Score

400-500

Baldrige Score

600-700

From To

3 years

2000-01 2003-04

For PMI 23 Feb 2005

Cost Management

• Budgets were prepared for every year to include the cost of

effort of every associate who invested their time in Business

Excellence.

• Costs associated with BET, Travel, Training, Assessment,

Communication, Books & Journals, Benchmarking visits,

External consultants engaged, time of Top Management and

other associates engaged with Business Excellence initiatives,

Conferences attended etc were included in the annual budget

For PMI 23 Feb 2005

Quality Management

• The BET focused on ensuring that the quality of

approach and its deployment at all levels of all

initiatives were as per the iQMS of the company.

• Since TCS is a CMM and PCMM level 5 organization

globally this was not a very difficult task.

• Locating BE Managers at all critical centres and

Geographies ensured that this was fully achieved.

• Systematic reviews of all processes at the Business

Excellence Councils further strengthened the Quality

Management aspect.

For PMI 23 Feb 2005

Communication Management

• This was achieved through several means using all of the

Organization’s channels of communication

• Corporate Communication was fully involved in this process

• Special column titled “ExceLLens-Your wide angle view of

Business Excellence” was started as a part of Monthly

magazine @TCS enumerating several case studies.

• BE Awareness Programs were initiated through out TCS with

the help of Learning and Development Group.

• Special BE Home page was started in the Employee Portal

called “Ultimatix”

• Effectiveness of communication was monitored through the

Associate survey called PULSE.

For PMI 23 Feb 2005

HR Management

• The BET was staffed with senior persons with considerable

experience in TCS.

• Persons with experience in driving Business Excellence in

other organizations were also recruited and staffed in BET.

• All the BET members had to undergo special training and

had to qualify as MBNQA Assessors.

• In addition, Business Excellence Champions were

identified across TCS in all centers and geographies and

were provided with Training in a systematic manner.

For PMI 23 Feb 2005

HR Management - continued

• External Consultants were engaged for Training and Consultancy

who had considerable experience as Senior Baldrige Examiners.

• BET members were engaged in assessing other companies of the

Tata Group using the MBNQA Guidelines which gave them

considerable exposure to the assessment process as well as to

Best Practices of other companies.

• The senior management were fully involved as a part of the Cross

Functional Teams responsible for each category of the Model. This

ensured their participation and gave the process the much needed

visible support.

For PMI 23 Feb 2005

Risk Management

• Using the six hats technique of Edward de Bono the two major risks were identified - the wrong adoption of a well designed approach and weak deployment across the organization.

• We introduced a self assessment process called “BEST” at all centers and geographies using the Internal expertise of TCS and systematically planned and executed the process to mitigate the risk.

For PMI 23 Feb 2005

Our journey of excellence…

457515

0

100

200

300

400

500

600

700

800

2000-01 2001-02 2002-03

Years

As

se

ss

me

nt

Sc

ore

s

Good 587 609

JR

D Q

V A

wa

rd

2003-04

Results Achieved so far

Baldrige Benchmark

* JRDQV Award: Tata Group Award for Business Excellence

Tar

get

2004-05

650

Not to scale

For PMI 23 Feb 2005

Conclusions

• The results achieved so far show that we are on the

right track

• PM Concepts have helped us to achieve the desired

results in a systematic way.

• PM steps helps in ensuring that the approaches are

deployed effectively across the Organization.

• Monitoring is made simpler and mid course

corrections where ever necessary is made easier

through the systematic use of PM Processes

For PMI 23 Feb 2005

Thank you