peg case tcs operating tactics reduce costs retain customers

7/15/2019 PEG Case Tcs Operating Tactics Reduce Costs Retain Customers

http://slidepdf.com/reader/full/peg-case-tcs-operating-tactics-reduce-costs-retain-customers 1/20

© 2009 APQC. ALL RIGHTS RESERVED

Operating Tactics in Tough Times:

Reduce Costs and Retain Customers

Case Study

Tata Consultancy Services Site Visit Date: July 15, 2009

SITE VISITS HOSTS:

Govindarajan Jagannathan

Executive Vice President,

Global Head of Business Excellence and Leadership and Governance Process Design

Process Excellence Group, Tata Consultancy Services

A. Srinivasan

Vice President and Global Head of Knowledge Management Systems and Process Digitization,


Vipin Arora

Principal Consultant,

Global Head of Program and Change Management


Lakshmi V. Murali

Principal Consultant and Co‐Lead for Leadership and Governance Process Design


D. Rangarao

Senior Consultant, Leadership and Governance Process Design


Pathikrit Bandyopadhyay

Senior Consultant, Leadership and Governance Process Design


Smriti Mulye

Consultant, Leadership and Governance Process Design




Operating Tactics in Tough Times: 2 Case Study: Tata Consultancy Services

Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED

Tata Consultancy Services

SNAPSHOT

Founded in 1868, the Tata Group is a multinational conglomerate based in Mumbai, India. The largest

private corporate group in India and one of the most respected institutions in the world. Tata has

interests in Materials, Engineering, Information Technology and Communication, Energy, Services,

Consumer Products, and Chemicals. Some of its large companies include Tata Steel, Tata Motors, Tata

Consultancy Services, Tata Power, Tata Communications, Tata Chemicals, Tata Tea, Voltas, and Titan

Industries. With 114 companies and subsidiaries in seven business sectors, Tata Group operates in more

than 85 countries across six continents and provides services to more than 80 nations. In 2008 the Tata

Group reported $63 billion (USD) in revenue.

Established in 1968, Tata Consultancy Services (TCS) is the first and largest software company in India.

With revenues of $6.01 billion in FY 2009, TCS has a global presence in 140 offices across 42 countries

and approximately 126,000 employees. The organization is also recognized as one of the top Indian IT

companies and has more than 900 clients in 55 countries. Forty‐nine of the top 100 organizations on the

Fortune 500 Companies list are TCS clients. In addition, TCS has a highly educated and diverse

workforce. More than 70 percent of its employees are engineers or PhD holders, and the organization

incorporates nationalities across the globe.

The organization operates in numerous industries including banking and financial services; insurance;

energy

and

utilities;

telecommunications;

media

and

entertainment;

government;

life

sciences

and

health care; manufacturing; retail and consumer goods; travel, transportation, and hospitality; and high

technology. The TCS portfolio of offerings includes IT services, consulting, business process outsourcing,

IT infrastructure solutions, engineering and industrial services, and product‐based solutions. TCS is also

the first organization in the world to be assessed at Level 5 for integrated, enterprise‐wide CMMI

(capability maturity model integration) and the PCMM (people capability maturity model).

TCS’s Vision is to be a global top 10 organization by 2010. The TCS mission is: “To help customers

achieve business objectives by providing innovative, best‐in‐class consulting, IT solutions, and services.

To make it a joy for all stakeholders to work with us.” As noted by Executive Vice President and Global

Head

of

Business

Excellence

and

Leadership

and

Governance

Process

Design

Govindarajan

Jagannathan,

“It’s not just work, but work with pleasure.” The vision and mission is fulfilled by a strong set of core

values, which include leading change, integrity, respect for the individual, excellence, learning, and

sharing.

TCS continues to receive international recognition for its process excellence and is the recipient of

numerous awards including the JRD Quality Value Award from the Tata Group and India’s CII‐EXIM

Business Excellence Award (similar to the European Foundation for Quality Management Excellence





Award). In 2009 TCS received the Most Admired Knowledge Enterprise (MAKE) award for the fourth

time since 2005 and ranked No.1 by the Dataquest Magazine’s DQ Top 20 company rankings for 2009

for the 7th consecutive year.

BACKGROUND

Every year the environment around us changes. As changes occur in the market, we must anticipate and update our processes. Today, our focus is on how to deliver more with less.

—A. Srinivasan, Vice President and Global Head of KM Systems and Process Digitization, TCS

TCS Operating Model and Process Excellence

Process excellence is engrained in the TCS’ culture, services, customer management, and organizational

operations. Since

1994,

TCS

has

strategically

focused

on

process

improvement.

Figure

1 depicts

the

process excellence journey at TCS, which initially focused on quality control systems and quality

management.

15th J uly 2009

Copyright ©2009 Tata Consultancy Services L imited

19

Our Process Excellence J ourney

1994

1999

2001

2002

2004

2005

2006

2007

Early 90’s: TCS-QMS

ISO 9001:1994

80’s: Quality Assurance

SW-CMM®

P-CMM®

ISO 9001:2000

iQMS+ CMMI V1.1

+ P-CMM

TCS wide ISO 9001:1994 certification

17 centers assessed at SW-CMM® Level 5

4 centers assessed at P-CMM® Level 4

TCS wide ISO 9001:2000 certification

TCS wide CMMI® and P-CMM® Level 5, JRD QV Award

TCS wide ISO 9001: 2000, BS7799, BS15000

TL9000, AS9100, IS13485, ISO 27001, ISO 20000iQMS

+ Domain models

iQMS+ BPO, Environment Practices

+CMMI V1.2

TCS wide CMMI® v1.2 Level 5

ISO 14001

iQMS+ Security, IS, BCP practices

iQMS

+ Sales, Consulting Practices

+ integrated BPM

TCS wide Triple ISO Audit

ISO 9001:2008, ISO 27001, ISO 20000

2009

Figure 1: The TCS Process Excellence Journey

The process excellence journey is continuous and dynamic at TCS. Moreover, since information

technology is an agile industry, strategy and process reviews occur quarterly and sometimes more





frequently based on need. Strategic planning horizons are set out 12 to 24 months, again mainly

because the industry is constantly changing.

TCS is led by a CEO/managing director who oversees the corporate functions such as HR, corporate

finance, corporate affairs, marketing, legal, and research and development, whereas the COO takes care

of the entire operations of the organization. Industry solutions units, new growth markets, major

markets, and strategic initiatives are the primary business segments.

Like many organizations, TCS is aligning process improvements to reflect changing business needs. In

2008 its customer base experienced economic stress and required an increase in business value, which

has affected key processes and TCS’ business proposition. Process changes address cost, productivity,

and customer relationships. For instance, in 2008 and 2009 the organization developed processes to

service different market segments and enhanced its offerings that provide customer value.

PROCESS CAPABILITY AND MATURITY

The three cornerstones of process excellence are simplification, standardization, and integration. —A. Srinivasan, Vice President and Global Head of KM Systems and Process Digitization, TCS

Process capability and maturity is also managed by the process excellence group. The group’s goal is to

ensure “(TCS clients) an experience of certainty & one global service standard by enabling the operating

units to drive agility, rigor and continuous improvement through the adoption of lean, pragmatic and

standardized processes.” TCS’ process excellence group drives continuous process implementation and

improvement across

all

operating

units.

Operating

units

are

accountable

for

deploying

processes

across

business units. The process excellence group works closely with operating units throughout process

design, deployment, and support.





The process excellence group works with each TCS operating unit to ensure that each process is

designed, deployed, and improved in a consistent manner. Figure 2 illustrates the link between the

process excellence group and TCS operating units. Teams from the group are deployed to ensure proper

support, design, and compliance of TCS processes.

15th J uly 2009

Copyright ©2009 Tata Consultancy Services Limited

PEG

Digitization

21

Process Excellence Group and its Interface with Operating Units

Process

Improvement

Process Excellence Head

Deployment Support

Process Area 1

Process

Area 2

Process

Area 3

Process Area 4

Process Area (n)

Audi t

Compliance

DigitizationSupport

OU SupportTeam

OU SupportTeam

OU SupportTeam

OU Support

Team

PISupport

Design Team

Process Area 1

Process

Area 2

Process

Area 3

Process Area 4

Process Area (n)

Audi t &Compliance

Audit &Compliance

Team

ProcessImprovement

ProcessDigitization

Operating Unit (ISU Example)

Operating Unit Head

Client

Groups &

Other OUfunctions

Process Excellence Leader

Bid/SalesMgmt. Office

Quality Assuran ce

Manager

ProgramMgmt. Office

Knowledge

Champion

InformationSecurity

Manager

Audi t &Compliance

Manager

PI Champion

BM Champion

Figure 2: Operating Units Interface

The process excellence group implements improvements using its wheels of process excellence model

(Figure 3). Process excellence is achieved through robust process design and improvement, deployment,

compliance, and digitization1, supported by strong organizational change management. At TCS, the key

to achieving process excellence is ensuring each of these factors is robust and integrated.

15th July 2009

Copyright©2009 Tata Consultancy Services Limited

22

The Wheels of Process ExcellenceEnsuring Agile, Rigorous and Pragmatic processes

OU PE n

ProcessDesign &

Improvement

Process

Digitization

Process

Deployment

Process

Compliance

OU PE 2

The key to achieving process excellence is by ensuring

that each of the wheels are extremely robust and its cog s

are well integrated

Program & Change

Management

OU PE1

Figure 3: The Wheels of Process Excellence Model

1 At TCS, process digitization establishes controls and automation. Refer to page 6 of this case study for

additional detail on process digitization.





The process excellence group uses several levers to ensure cost and productivity in each wheel of

process excellence: shared services, enablement through competency building, knowledge reuse, and

digitization. Knowledge reuse is critical to the process. “We depend on knowledge reuse across our

126,000 employees to make sure we are not reinventing a process or tool,” said Jagannathan. Shared

services help to pool resources and eliminate process redundancies so that repetitive activities that can

be deskilled through digitization are outsourced to an internal shared services group. The goal is to

consolidate resources that can increase productivity. Process flow across the organization incorporates

feedback and input from a change advisory board, operating units, the process excellence group,

customers, and suppliers.

Each operating unit has an extended process excellence group. These groups within the operating units

have a defined set of roles and responsibilities. For example, they must notify, prepare, and conduct

operating unit training plans. Operating unit process groups must also deploy processes and provide

process data specific to the operating unit. Participating in surveys and providing suggestions to improve

processes are some of the additional tasks given to the extended process excellence groups. As the

organization becomes more vertical in organizational structure, the role of extended process excellence

groups has become more decentralized. However, through the digitization of processes, collaboration

across the operating unit process excellence groups is achieved thereby creating a virtual team

comprising of core and extended process excellence groups.





The Process Design and Improvement Model

As mentioned, process design and improvement is one of the key wheels that drive process excellence

across

TCS.

Process

design

and

improvement

adheres

to

a

model

that

provides

inputs

and

links

from

several resources. Figure 4 depicts the process design and improvement steps in the organization.

15th J uly 2009


P r o c e s s

D e s i g n a n d I m p r o v e m e n t

Yes

28

Process Design and Improvement

Improvement

Strategy

Quality

Models

Stakeholder

Requirement &

Practitioner

Feedback

Learning/

Best

Practices

Process

Performance

Analy sis

ToCAB for Plan

integration

ToProcess

Digitization for definingdigitizationrequirements

ToCAB, Audit &

Compliance,

Deployment Support

for process review andsign off

ToDeployment

Support for processdeployment

OU PEn

OUPE1ProcessDesign &

Improvement

ProcessDigitization

ProcessDeployment

ProcessCompliance

OU PE2

InputsLinkage

Process Steps

Gather Requirements

Prioritize Requirements

Analyse Impact s

Identify KPIs

Design Processes

Modify Process Design

Pilot process

Discard/Redefine processes

Baseline new processes

Prepare T raining Material

Update Knowmax

Train PDS/ACM

Success

No

Yes with Change R e d e f i n e

Figure 4: Process Design and Improvement

As shown, each process improvement incorporates input from stakeholders including customers, senior

management, and process teams. Aspects pertaining to quality models, improvement strategies, best

practices, and process performance analysis are also taken into consideration while making any process

change or improvement.

After gathering relevant inputs and requirements, each potential process is prioritized by the group.

“We don’t want to pick up all process improvements at one time,” said Vice President and Global Head

of Knowledge

Management

Systems

and

Process

Digitization

A.

Srinivasan.

Accordingly,

all

requirements

are analyzed to determine the impact on existing processes and are prioritized. Key performance

indicators are also developed to show the impact a process will have on the organization. During the

early stages of development, the process digitization group defines automation requirements and

enables the change advisory board to prepare for full‐scale integration.

The Process Design groups such as Leadership and Governance, Sales and relationships, Delivery and

others design their respective processes with inputs from the change advisory board, through audit and





compliance and through deployment support for process review and approval. Each process is modified

and piloted prior to full‐scale rollout. Once the process is approved, deployment support is provided,

and old processes are discarded or redefined as required. A baseline for new processes is developed in

conjunction with training materials. During the process design, the process design group updates

relevant knowledge repositories and tools. Accordingly, the internal knowledge platform is updated by

the respective Design groups to reflect the process changes (Figure 4 above, on page 7). Throughout the

process life cycle, the process excellence group gathers feedback from stakeholders including

customers, practitioners, partners, suppliers, and alliance partners.

Process Digitization

Process digitization is another key ingredient for process excellence. At TCS, process digitization

establishes controls and automation. Automation is critical to ensure process compliance and

deployment.

Accordingly,

the

digitization

process

is

clearly

articulated

across

the

organization.

Figure

5

shows the digitization process used at TCS. As described by Vipin Arora, global head of program and

change management, “The digitization of processes simplifies deployment and subsequent value

capture, so operating units face decreased implementation‐ or compliance‐related problems.”

As shown in Figure 5, inputs to digitization are received from the change advisory board, IT, the chief

technology officer, and the chief information officer. A digitization exercise that involves controls,

automation, and preparation of Dash Boards also connects with process deployment and support teams

throughout the life cycle of the process. Each process step must evaluate digitization needs upfront so

that when processes are rolled out, the corresponding digitization is also ready for automating process

deployment.

15th J uly 2009


4242


Process

DesignDigitization

Identify digitization requirement

Digitize process workflow

Sign off User Acceptance Testing

Release Digitized Process Workflow

Process Acceptance

Review high level processes and Sign off Integrated Process Release Plan


From

Process

Design &

Improvement

Process

Deployment/

Support

From CAB

Process

Deployment

Inputs Process Steps Linkage

OU PEn

OU PE1ProcessDesign &

Improvement

ProcessDigitization

ProcessDeployment

ProcessCompliance

OUPE2

Figure 5: Process Digitization





To assist with the process deployment, TCS leverages digitized tools encompassing several areas of

integrated quality management systems throughout the project life cycle. Figure 6 depicts the process,

tools, and methods that support digitization.

15th J uly 2009


Digitized tools which enable iQMS adoption throughthe Project Lifecycle (Example)

D-25TQASIPMS

Lessons Learned/Best Practices

Template/Planning

Data

Project

Status/Metrics

Project data

Project planned &actual data/ Risks

Project closureInformation/Project end metrics

EQP, GQD

Project Start-up

IPMS

ProjectPlanning

IPMS

ProjectManagementReview(PMR)

EQP

Project Wind-up

IPMS

ProjectMonitoring

(PM)

GQD, TCS

RP, D25

Project AuditTQAS

43 Figure 6: Digitization Process, Tools, and Methods

Process digitization by a centralized IT team enables the rollout of consistent applications for a set of

processes across TCS. This is a critical necessity considering the large number of employees spread

around multiple offices around the world. But this does not rule out the need for having tailored or

customized processes for individual operating units.





Process Deployment

“Designing the best processes is pointless unless those processes are deployed well,” said Arora. Figure

7

shows

the

enterprise‐

wide

process

deployment

strategy

at

TCS.

The

process

excellence

group

oversees deployment and is accountable across operating units. A deployment plan is developed by the

Process Deployment Support Group using input from process designers, the change advisory board, as

well as process digitization and audit and compliance staff. Process deployment incorporates all aspects

of implementation including communication, training, workshops, and deployment support. TCS tracks

training and deployment status metrics and collects feedback in order to identify improvements and

communicate change requirements. Any deployment‐related challenges or issues are addressed by the

core process design and improvement teams.

15th J uly 2009


44

Process Deployment

Prepare Deployment Plan

Prepare & Update Communication P lan &Deployment Checklist

Prepare training plan for OU PEG

Conduct training workshop for OU PEG

Support Deployment

Tracking training and deployment status

Collect Feedback

Identify improvement

Communicate change requirement

Process

DesignDeployment OU PEG

Inputs Process Steps Linkage

Review high level processes and Sign off Integrated Process Release Plan

Process AcceptanceFrom CAB

on

Integrated

Release Plan

From

Process

Digitization

From

ProcessDesign

From OU PE

based ondeployment

challenges/

issues faced

From Audit &

Compliance

on change

requirement

To Core

Process

Design and

Improvement

To OU PE for

deployment in

the OU

OUPEn

O U PE1ProcessDesign &

Improvement

ProcessDigitization

ProcessDeployment

Process

Compliance

O U PE2

Figure 7: Process Deployment





Process Compliance and Audit

The final element in the TCS process excellence wheel is compliance. Figure 8 shows the compliance

processes

at

TCS.

15th J uly 2009


51

Compliance

Compliance

Review &

Sign off Process

Design

DesignTeam

Prepare ACMTraining Material

Update Audit

Checklist

ConductProcess Audit

Communicatechange

Analy zeNon Compliance

DigitizationTeam

DeploymentTeam

Process Acceptance ACT

Process Verification

Prepare IntegratedRelease (feature) Plan

(Budgeting)

Decide on piloting

Release process

ProcessDesign &Improve

ment

Need

NO

Yes

Process

Design &Improve

ment

Process Acceptance CAB

Review & Sign off ProcessDesign

OUPEn

OUPE 1ProcessDesign &

Improvement

ProcessDigitization

ProcessDeployment

Process

Compliance

OU PE 2

Figure 8: Compliance

This process is also used to prepare for internal audits. TCS audits the deployed processes in order to

ensure effectiveness apart from compliance. “We don’t want to prepare for an audit per se; we want to

be prepared for an audit at any time,” said Arora. “We want to make sure that the process is effectively

used and is providing business value.”

Enabling Tools for Process Management

TCS leverages several tools to enhance and promote process management. Srinivasan said: “Doing all

these things in manual mode would be impossible. That is why we automate everything and focus on

developing in‐house tools for improvement.”

Process modeling, for example, is supported by a BPM tool platform for process design and integration.

A BPM platform crease high‐level process models, whereas a wiki portal stores detailed quality

management processes, guidelines, and templates. This wiki platform promotes collaborative authoring

and encourages social networking. Design teams create process content and provide feedback directly

using the wiki platform. Process designers access feedback comments entered as discussions in wiki

pages and in other KM platforms in order to improve the processes.





KnowMax, TCS’ KM platform, is leveraged for collaboration during process design, digitization, and

improvement. KnowMax helps to capture and store explicit knowledge in terms of structured asset

types such as case studies, caselets, white papers, and project profiles and also promotes collaboration

and interaction to help uncover tacit (unstructured) knowledge for the organization. TCS’ KM platform

plays a significant and pivotal role in enabling enterprise knowledge to be shared across the enterprise.

IMPACT is an additional tool within the KM platform that helps monitor and manage improvement

projects. This tool shows work flow, shows improvement action by individuals, and provides business

benefit information. In addition, TCS deploys feature‐rich tools such as IdeaMax and CTO Blog that act as

platforms to capture innovative ideas from employees. Finally, a number of improvement tools and

methodologies including Lean, DMAIC (define, measure, analyze, improve, control), design pattern,

technology change management, and process change management are used across the organization to

promote process institutionalization and employee engagement, as well as improve operational

efficiency.

Innovation and Incremental Improvements for Process Excellence

Innovation and incremental improvements also play an important role in developing and sustaining

process improvements. At TCS, breakthrough innovation methods are supplemented by incremental

improvements to enable a holistic process improvement approach. The organization’s goal is to focus on

innovation and encourage participation across the organization. Equal importance is given to building

alliances to promote business‐aligned innovation and reward and recognize individuals and teams for

innovative contributions.

A director

of

the

technology

organization

works

directly

with

academia,

alliance

partners,

and

stakeholders to nurture innovations. TCS has more than 20 innovation laboratories to foster innovation

in new technology and process areas. Senior managers also invite teams to participate in idea

generation and innovation programs to implement ideas across the organization. TCS’ technology

excellence group was created to promote innovation in new technology areas that in turn pass on the

knowledge to project delivery teams. Together, these investments drive an approach of “learn once and

replicate everywhere” within TCS.

Innovation is highly valued within the organization, and employees are recognized and rewarded for

contributions to innovation and process excellence. “We’ve learned over time that money is not the

only motivator;

employees

are

also

motivated

intrinsically

through

other

types

of

reputation

models”

said Srinivasan. Accordingly, the organization recognizes contributions using publications that describe

the innovation and highlights the achievement of an employee. Such publications are shared across TCS.

And a reward system called Gems enables employees to collect points that can be redeemed for

merchandise in different stores. Employees are encouraged to submit innovations into an idea

generation platform either individually or through teams.





The Tata Group encourages innovation from its companies, including TCS, through a popular annual

competition. Teams submit innovations to regional networks and forums and then advance to a final

round of competition at headquarters. Selected teams are recognized in a formal event by the Tata

Group chairman.

PROCESS ADAPTABILITY AND QUALITY

TCS developed a robust quality framework for process management that encompasses industry

standards, an integrated quality management system, and organizational value propositions. Figure 9

depicts the underlying quality framework for process management.

15th J uly 2009


31

The underlying quality framework for process management

Strengths iQMS Value Proposition

On-Time, On-

Budget, Defect-

free delivery

Year-on-Year

productivity

improvement

Agree, deli ver and

validate value

provided

Reduce cost of

quality

Defect

Prevention

Continuous

Improvement

Industry stds

ISO9000/

IS027001/

IS020000

CMMi

PCMM

Domain

TL9000 - Tele

AS9100-Aero

ISO13485 -

Medical devices

Integrated Quality Management System

TCS Quality Policy

To achieve customer and ot her stakeholders’ satisfaction by delivering s olutions

which meets their needs and expectations

Solution/Service

Delivery

Processes

People

Processes

Tools and

Technology

Ass ets

Security

Processes

Policies

Process

Hand Books

Procedure

Manuals

Standards, Guidelines

Checklists, Templates

Knowledge

Management

Support

Processes

TBEM/ MBNQA

Figure 9: Quality Framework for Process Management

All processes in the organization undergo detailed analysis to ensure efficiency and effectiveness, by the

respective

units

within

Process

Excellence

Group.

When

new

processes

are

designed,

process

indicators

are defined in terms of output and outcome indicators. Output measures are indicators during the

deployment of the processes, whereas outcome measures track the value (benefits) generated after the

deployment of the processes. The final benefits of each process are identified and measures are

collected in order to fully examine the value of the process. For example, a deployment measure related

to knowledge management would have typical output measures like the number of people using the

platform, downloading data, and uploading artifacts. On the other hand, measures such as reduction in





proposal management cycle time and productivity using reusable assets describe the outcome through

the KM processes.

To measure process deployment, TCS uses a process deployment index, illustrated in Figure 10. Process

metrics are segmented into different areas, such as sales processes, knowledge management, and

finance. Each area tracks relevant measures to determine the level of deployment across the

organization. The measures from each process area rolled up to compute overall process deployment

status within the process area. Depending on the process, on a weekly or monthly basis, the

organization can track how a process is deployed across the organization.

15th J uly 2009


45

Measuring Process Deployment using ProcessDeployment Index (PDI)

Process Deployment Dashboard and Index (PDI)

Selected measures from each box to compute overall process deployment status

Process

Area 1

Metrics

Process

Area 2

Metrics

Process

Area 3

Metrics

Process

Area 4

Metrics

…. … …

OU Head

BSC

Global

PEG Head

BSC

Corporate

BSC

Organizational Business Objectives

Mostly

Lead

Measure

s

Mix of

Lead &

Lag

Measure

s

Lag

Measure

s

Process

Area (n)

Metrics

PDI PDI

PEG Core Level Internal Dashboard (Readiness and Deploym ent Measures)

Composite status of Process Deployment

Results of Deployment (Some BSC Measures should have a bearing with Measures of PDI)

Lag

Measure

s

Appr oach

Deployment

Results

Goals

Figure 10: Process Deployment Index

If a process is not achieving the required level of deployment, then every effort is made by the Process

Excellence group to uncover the root cause of noncompliance. Additional training, coaching, or

mentoring is provided by the concerned design groups supported by the Process Deployment Support

group if a process is not deployed effectively. The initial focus for new processes is to reduce the

variation in

the

process

deployment

index

measures

across

different

operating

units

before

improvement measures are attempted. A variation in results indicates a difference in deployment levels,

which in turn indicates a lack of institutionalization. However, determining a root cause for

noncompliance is a key focus. “We need to understand the root cause of why people are not using a

certain process. In some cases, it is a training issue. But if it is because an employee is not finding value

in the processes, we need to know so we can communicate the business value better,” said Arora.





TCS tracks and monitors process deployment across all of its operating units. Using a global dashboard

system, employees have a window to view all measures across the organization. Measures are

consolidated at the operating unit level, process area level, and at the enterprise level to provide a

corporate view and generate meaningful discussion. All processes must reach a stipulated maturity level

across operating units within a given time frame. This process for the process deployment index is

strictly adhered to by all operating units of TCS, including those created through acquisitions.

The initial focus for new processes is to reduce the variation in the process deployment index measures

across different operating units before improvement measures are attempted. A variation in results

indicates a difference in deployment levels, which in turn indicates a lack of institutionalization.

During acquisitions, process integration is supported through a framework that compares existing

processes to TCS processes. The objective is to identify the best processes. “If our processes are more

mature and effective, then we use our process,” said Arora. However, in some cases, TCS identifies

processes in the acquired organization that demonstrate a better value. It is extremely critical that

processes and technology be integrated for achieving better adoption. Legal and cultural requirements

are also considered during process integration.

Change Management and Communication

According to Arora, effective change management and communication are critical to achieve process

excellence. “Communicating business value is critical because people, not technologies, drive process

excellence, and those people need to be aware of the value in adopting any process,” he said.

At TCS, change management ensures consistent process adoption across the organization. Its change

management model (Figure 11 on page 16 below) is segmented into analysis, planning, and execution.

In the analysis phase, stakeholder analysis, benefit identification and planning, and a change impact

assessment feed into a change readiness assessment. The change readiness assessment examines

change response behavior and assesses readiness. The planning phase is guided by a training and

communication strategy. The change management plan summarizes concern areas to prepare for and

details how to facilitate the change program. Finally, the execution phase involves training and

communication and possibly organizational restructuring and role alignment. In some cases, the change

management strategy may require the organization to redefine roles and responsibilities. Each

operating unit

leverages

dedicated

change

agents

to

ensure

implementation,

communication,

training,

and process adoption.





15th J uly 2009


Organizational Change Management for ensuring

process adoption

47

A Identify & engagekey stakeholders

B Identify, prioritize& set measures

C Assess changeimpact

BenefitIdentification

& Planning

Business

Solution

StakeholderAnalysis

Change ImpactAssessment

Change Readiness

Assessment

Training

Delivery

ChangeManagement Plan

CommunicationDelivery

OrganisationRestructuring

B C

D

G

H I J

D E xamine change

responsebehavior &assess readiness

G Summarizeconcern areas &

action plan forfacilitating thechange program

H Execute trainingplans & measure

effectiveness; re-plan based onfeedback

I Deploy

communication plan& measure

effectiveness; refinecommunications

J Re-define roles& responsibilities

TrainingStrategy &

Plan

CommunicationStrategy &

PlanE F

E Devise training

strategy & planF Formulate

communicationplans, describechannel &interventions

Analysis

Planning

Execution

A

Figure 11: Change Management Model

TCS uses a communication management strategy to ensure process improvements are clearly

articulated across the organization. In the early stages of process rollout, communication planning

determines information

and

communication

needs.

Once

needs

are

defined,

communication

plans

address how to make information available to stakeholders in a timely manner. The organization also

develops ways to measure effectiveness of communication.

TCS adopts a number of one‐way and two‐way communication channels that leverage a combination of

push and pull communication strategies. Its objective is to make sure communications cascade across

the organization both vertically and horizontally on a regular basis. One‐way communication channels

include:

• KnowMax—a KM portal,

• @TCS—an internal monthly magazine,

• Ultimax News Corner—an intranet site,

• screensavers and wallpapers on PCs,

• internal e‐mail broadcast,

• surveys,

• process events,

• wikis, and

• leadership videos.

The organization also uses the following two‐way communication strategies:

• reviews,

• internal customer connections,

• wikis,

• a KM discussion board,





• IdeaMax—an idea generation platform,

• internal blogs,

• e‐

mails,

• process events, and

• town hall meetings.

CUSTOMER REQUIREMENTS

Obtaining stakeholder and practitioner feedback is critical to our success. Our tools and techniques are designed to capture immediate feedback on cumbersome, difficult, and redundant process steps. —A. Srinivasan, Vice President and Global Head of Knowledge Management Systems and Process

Digitization, TCS

According to Srinivasan, stakeholder and practitioner feedback are critical to process improvement at

TCS. Accordingly, each process collects feedback from multiple types of consumers, including customers,

practitioners, partners,

suppliers,

alliance

partners,

shareholders,

professional

bodies,

and

analysts.

Figure 12 shows the feedback collection methods employed by TCS. Customer feedback, for example, is

gathered strategically and tactically. At the strategic level, customer input is obtained from client

engagement and leadership teams, client visits, client events, and a customer survey process. Customer

feedback is also obtained through interaction with client partners and during project reviews. Feedback

from partners, shareholders, and regulatory bodies is gathered from a variety of teams and meetings

that incorporate key shareholders and partners.

15th J uly 2009


29

Stakeholder and Practitioner Feedback Collection

•Provides immediate feedback on cum bersome/ difficult to use/ redundant pr ocess steps

•Creates buy in amongst users, and reduces process deployment drag

• Strategic Level: Client Engagement by Leadership Team, Client Visits, Client Events,Lifeline survey

• Tactical Level: Client interaction with Client Partner/GRM, Client Events, Lifeline Survey• Operational Level: CSAT Survey, Project Review

Customer

Feedback

• Partner Surveys,• Partner Relationship Management• Leadership Team & Partner connect

Partner/

Suppliers/

All iances

• Feedback through AGM• Shareholder compliant handling by Company Secretary• Leadership Team connect

Shareholders

• Participation in forums organized by Government agencies, Regulatory bodies,Professional Bodies

• Leadership Team connect

Government/

Regulatory Bodies/

Professional Bodies

• Analyst Relationship Managers• Analyst Meets & participation in Analyst surveys, forums• Analyst reports

Analysts

• Internal Customer Connect• Advisory Council Meetings• Feedback collected from deployment

support

Practitioner

Feedback

• Pilot & Process Reviews• Surveys (Dipstick and Detailed)• Wiki Platform• Ideamax

Figure 12: Feedback Collection





TCS’ relationships with academic institutions are another opportunity for continuous feedback. TCS

often recruits employees from universities and works closely with those universities to ensure it is

obtaining the best possible candidates. Every six months, leaders from TCS meet with heads of

universities to share the current business plan and communicate knowledge gaps in its work force.

University leaders use this information to design courses that are integrated into the curriculum.

Ongoing collaboration between TCS and universities is mutually beneficial; students receive training that

makes them more marketable in the work force, and TCS ensures it will attract employees that fill a

business need.

TCS also obtains practitioner feedback through its advisory council meetings, pilot and process reviews,

and surveys. The process excellence group also relies on a number of internal platforms to collect

practitioner feedback. The organizational wiki platform, IdeaMax, and the internal customer connect are

some of the technologies that collect process feedback. As part of its platform, TCS has a number of

social networking platforms (like an enterprise‐wide Q&A platform) nurturing employee collaboration

and these platforms also play a direct or indirect role in gathering feedback. Apart from this, virtual

communities are often formed in the KM platform to discuss customer feedback or other aspects that

affect process improvement.

As noted, customer requirements are gathered from surveys and customer satisfaction metrics. TCS

uses frequent customer satisfaction surveys to collect feedback that can affect process excellence. Each

project is required to issue a customer survey every six months. Data from these surveys is tracked

against process maturity metrics to ensure TCS is meeting client expectations. In addition, a lifeline

survey is issued to ensure the organization is creating value for the customer. Customer feedback is used

to develop benchmarks and ensure consistent performance. The customer perspective is important; TCS

strives to ensure a positive experience for customers on the most critical parameters from their

perspective. Data is correlated to customer satisfaction to ensure there is alignment between internal

and external measures.

TCS also tracks measures such as on‐time delivery, on‐budget delivery, and defect‐free delivery. The

delivery and non‐delivery measures are made available to customers through a dashboard that

customers use to provide instant and online reviews of ongoing project activities.

Since employees are the largest consumers of processes, their feedback is also collected and

incorporated as a critical measure into TCS’ organizational process dashboard. TCS tracks the overall

associate satisfaction index using an internal satisfaction survey. More than 110,000 employees

completed the survey in 2009.





CRITICAL SUCCESS FACTORS, LESSONS LEARNED, AND THE FUTURE

Process excellence is a continuous process. It is a journey that continues year after year. —Govindarajan

Jagannathan,

Executive

Vice

President

and

Global

Head

of

Business

Excellence

and

Leadership and Governance Process Design, Process Excellence Group, TCS

TCS’ success in process excellence is validated by the awards it receives, high customer satisfaction, and

continuous growth. In FY 2009 its revenues exceeded $6 billion, which earned the organization a rank of

442 on the Forbes Global 2000 list. Among global IT service organizations, TCS is already ranked in the

top 10 for its revenue, profits, market value, and employees. The ranking is based on the company’s

study of various companies’ websites. Engagements continue to grow both in size and scope. Projects

that exceed $50 million increased 380 percent in 2008.

During its

process

excellence

journey,

TCS

identified

several

critical

success

factors.

First, it is critical to involve all relevant stakeholders in process management. TCS leadership support for

its process improvement strategies plays a critical role. For example, senior executives interact with key

stakeholders in keeping processes improved on a continual basis. Senior leaders also help promote

change management strategies and work closely with design teams on a regular basis.

Secondly, it is important to align processes with overall business needs and strategy. Identifying business

value and appropriate measures helps ensure process improvements are aligned with strategy and

improving efficiency. “If you can’t correlate a process to a business value, then you can’t be sure it is

improving the

organization,”

said

Jagannathan.

Third, it is important to focus on organizational change management and address challenges in the

process design phase. “Processes must be focused on people, not technology,” said Arora. “It is people

who ultimately deploy and integrate a process.” As a result, TCS finds that processes must be aligned

with the expectations and motivations of the work force. Change management and communication

strategies help obtain buy‐in and compliance across the work force.

Also, organizations must focus on enablers such as digitization, competency building, and reuse. “You

can’t be expected to manage processes manually; it is painstaking,” said Jagannathan. “Everything must

be automated

and

feed

into

the

collective

knowledge

base

of

the

organization.”

Finally, it is important to leverage forums that focus on best practices and knowledge sharing.

Continuous improvement relies on feedback from stakeholders, practitioners, and others that use the

processes. Social networking and collaboration are important to the effectiveness of each strategy.




TCS also shared lessons learned from its process excellence journey. The organization emphasizes the

importance of a systematic process deployment strategy in conjunction with a robust change

management and communication strategy. “You can have the best processes in place, but unless

someone is using them, they have no value,” said Jagannathan. In addition, the organization

recommends:

• process enablement through competency enhancement,

• process enablement through digitization,

• customer centricity and focus on business value of any process that is to be deployed, and

• simple and integrated processes.

Process excellence is a journey, and TCS strives to constantly improve. The goal is to ensure that all

processes are simple, agile, integrated, and reflect Lean process management.

TCS‘processes evolve based on market and customer needs. Each year the environment changes and

TCS must update its processes and offerings to address changing customer needs. Some of the changes

in 2008 resulted in productivity and customer relationship improvements. The focus in 2009 is to deliver

more value to customers using fewer resources. Accordingly, TCS focuses on operational excellence and

the business adviser program in response to changes in the economy. Jagannathan said: “Times change

and processes also change. With that, we implement changes in the process excellence group as well.”

Operating during challenging periods requires increased operational efficiency. Operational efficiency

can be achieved in several ways, according to Jagannathan. He advises focusing on the design of

appropriate processes in several functional areas like sales, delivery, marketing, and HR. Streamlining

processes using digitization also makes it easier to manage deployment. Process efficiency relates to

how well processes are deployed, whereas measuring business benefits relate to effectiveness.

Designing processes and digitizing appropriate processes with a focus on measuring efficiency and

effectiveness are key enablers for identifying and reducing waste, which contributes to operational

efficiency. Aligning the process design with business strategy and keeping the processes agile through

regular feedback from multiple stakeholders cannot be and should not be compromised, said

Jagannathan. Providing platforms for sharing knowledge across the organization helps accelerate

organizational learning. Finally, being transparent on process and related measurement details

enhances customer confidence and plays a substantial role in fostering a long‐standing relationship with

customers.

peg case tcs operating tactics reduce costs retain customers

Documents