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Tata Business Excellence Model2008

Sudhir Hasamnissudhir.hasamnis@tatamotors.com

020 66132199

October 3, 2008

JRDQV Winner2005

Highest Delta Award2007

Sustenance of Excellence Award2007

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Let us move together on our Journey to Excellence

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Excellence

Habits

Thoughts

Attitude

Values

Behaviour

Strengthen values….

Why Values Are Important

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Global ImageGlobal Image

ExcellentExcellent

AverageAverage

BeginningBeginning0 – 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

Steps Towards Excellence

PCBU is here

CVBU is here

1000 point scale

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Emergence of Business Excellence

Need for an Excellence Model

The Japanese undertook a silent revolution in product quality – a program of quality improvement with the help of two American professors. Dr. W. E. Deming and Dr. J. M. Juran.

They introduced Statistical Quality Control and new management philosophers to improve product quality at an unprecedented rate.

In 1980, NBC, an American channel ,aired a program titled,

“If Japan Can … Why Can’t We?”

Within few years, Fords earnings were the highest for any company in the automobile history, despite a 7% drop in US car and truck industry sales!

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Emergence of Business Excellence

Although the Americans were innovative and brimming with ideas, perhaps there were limitations in converting these ideas into quality product and services. The challenge was then to enhance competitiveness US Corporations.

Two people who did their share of work to improve the American economic condition by evolving and business

In 1987, the US Congress established the ‘Malcolm Baldrige National Quality Award’.

Let’s know more about this and other models.

Brief on Malcolm Baldrige Model

This award was instituted in the memory of Malcolm to,

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Models for Excellence

550-450

• Malcolm Baldrige award model

• RBNQA by IMC

• Tata Business Excellence Model

500-500

• European Quality Award model

• CII-Exim Award

• Rajiv Gandhi National Quality Award

Deming Award for Operational Excellence

1000 point scale

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Model 2008

Strategic objectives and Action plans/Initiatives

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Core Values

Applying them in performance excellence

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Core Values in High Performing Companies

Visionary Leadership

Organizational & Personal Learning

Agility

Valuing Employees & Partners

Managing for Innovation

Customer- Driven Excellence

Focus on the Future

Management By Fact

Focus on Results & Creating Value

Social Responsibility

Systems Perspective

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Visionary Leadership

• Setting directions and creating customer orientation

• The directions,values and expectations address all stakeholders

• Strategies systems and methods are for achieving excellence, stimulating innovation and building organizational capabilities

• Developing people and encouraging participation, learning ,creativity and innovation

• should be responsible to governance body, which in turn is responsible to stakeholders

• Personal role models in ethical behaviour

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Customer driven Excellence

• Quality is judged by customers. Hence,we need to take into account all product and service features that contribute to customer satisfaction

• These factors include anticipating future needs of customers

• Defect Prevention and error reduction important• ‘Makings things right’ is crucial • It is directed towards customer retention,market share

gain and growth• It demands awareness about developments in

technology and competitors’ offerings and rapid and flexible response

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Organizational and Personal Learning

• Incremental and Breakthrough• Learning is embedded in the organization.

(Adaptation to Change)• Sources of improvement are R&D,customers,

Benchmarking etc• Improvement is a part of work. Improvement

and learning directed not only at better products but being more adaptive,more responsive and efficient

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Valuing Employees and partners

• Investing in development of People• Opportunities like job rotation and increments for

enhanced knowledge• On the Job Training and computer learning• Means for regular communication, approaches to

evaluate progress,and means for adapting to changing conditions essential

• Partnership development• Internal - employees • External - customers, suppliers and alliances

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Agility

• Faster and more flexible response• Simplification of work units and processes• Time among the key performance measures• Simultaneous improvements in organization• Simultaneous improvements to Quality, time and

other objectives

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Focus on the future

• Understanding the short term and longer term factorsthat affect the business and market place

• Strong future orientation and willingness to make long term commitments to key stakeholders

• Planning to anticipate many of the factors related to stakeholders

• Developing employees and suppliers and creating opportunities for innovation

Strategy2020

2012

2008

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Managing for Innovation

• Making meaningful change to the organization’s products, services and processes

• Innovation should lead to new dimensions of performance

• Innovation in all aspects of business • Innovation becomes part of culture

Innovation Day

SQDCM Reviews

Innovation Formats

Patents & Copy rights

Share Café & SBS

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Management by Fact(s)

• Measurements linked to strategy and aimed at alignment with the goals

• Performance areas include all stakeholders• Extracting meaning form the data collected• Data and analysis support variety of purposes• Measurements are themselves evaluated for

suitability

SAP

PLM

Legacy

BSES

MIS

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Social Responsibility

• Basic Expectations - ethics,environment, safety etc

• Applies to products,services and operations• Emphasis on resource conservation and

waste reduction at source• Prevention is emphasized• Think”beyond mere compliance”• Ethical behaviour from leaders and

monitoring by governance body• Leadership and support to communities• Influencing other organizations as partners

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Focus on Results and Creating value

• Performance measurements to focus on key results• Results used to balance value for stakeholders• Conflicting requirements of stakeholders given

attention• Balanced composite of leading and lagging

performance measures offer means to communicate priorities

Partners

Strategy

Processes

Financial

People

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Systems Perspective

• TBEM provides the system perspective for managing the organisation for performance excellence

• Synthesis- Looking at the organisation and building requirements like objectives and action plans.

• Alignment- Using key linkages among TBEM requirements to ensure consistency of plans

• Integration- Individual components of Performance management system operate in a fully interconnected manner

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Value Driven Organization

• In an organization driven by values, we can feel the pulse running across

• Deployment more natural• People identify themselves with the goals better• Integration is ensured

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Role of Core Values in Business Excellence

TBEM Criteria

ExcellenceExcellence

TBEM Core Values & ConceptsTBEM Core Values & Concepts

Industry Leadership

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Tata Business Excellence Model

Approach MeasuresProcesses/Systems

DeploymentImplementation in all areas

Evaluate & ImproveFind and fill gaps

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TBEM: Bicycle Analogy

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TBEM 2008 Framework

• The Seven Categories & Point Values– 1.0 Leadership 120– 2.0 Strategic Planning 85– 3.0 Customer and Market Focus 85– 4.0 Measurement Analysis & Knowledge 90

management– 5.0 Human Resource Focus 85– 6.0 Process Management 85– Total 550– 7.0 Business Results

» Product & Customer Outcomes 100» Customer Focused Results 70» Financial and Market Results 70» Human Resource Results 70» Org Effectiveness Results 70» Leadership and Social Resp Results 70» Total 450» Total 1000

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2005