In Pursuit of Excellence Opportunities for Chartered Accountants · 20-04-2011 · • Ramakrishna Bajaj National Quality Award based on Malcolm Balridge R Venkatakrishnan FCA DISA(ICA)

In Pursuit of Excellence

Opportunities for Chartered

Accountants

R Venkatakrishnan FCA DISA(ICA)

Chennai

[email protected]

+914424618778/24618740April 20th 2011

August 20th 2008 R Venkatakrishnan FCA DISA(ICA)

CA – A Different Perspective

• Increased range of services

• Facilitating in Business Excellence

• It is not “Technical”

• Learn to wear different hats

April 20th 2011 R Venkatakrishnan FCA DISA(ICA)

• Learn to wear different hats

• We do not have to look at as an either or!

– CFO role now is more strategic

• Become a sounding board

• Be part of the solution

– Which means that you cannot be part of the problem!

Opportunities & Challenges

• Need for enhanced corporate performance

– Challenging times

– Need for greater efficiencies

• Resource crunch – not just financial


• Resource crunch – not just financial

• Facilitation of corporate turnarounds

• Banking sector requirements

– Credit evaluation

– Credit Rating – Basel II norms

What is Business Excellence

• Results that delight stakeholders

• It is all about management of performance

• Process & practice – to focus thought and action


– to focus thought and action

– systematic and structured

– enhanced increased performance.

• Process of continuous improvements– corrective actions prevent recurrence

– preventive actions prevent occurrence

Approach to Business Excellence

• Understand the key business factors

• Understand competitive environment

– Understand relative position

– Understand competitor position


– Understand competitor position

• Understand strategic challenges

– Business, operational & human resources

• Obtain industry and competitor data

Core Values of Business

Excellence

• Visionary leadership

• Customer-driven

excellence

• Organisational &

• Focus on the future

• Managing for

Innovation

• Management by fact


• Organisational &

personal learning

• Continuous learning

• Valuing employees &

partners

• Agility

• Management by fact

• Social responsibility

• Focus on results and

creating value

• Systems perspective

Visionary Leadership

• Setting directions for the organisation

• Create customer focus

• Establish strong value systems

• Set stretch goals – high expectations


• Communication– Occupy the mind space

• Facilitate strategies, systems and methods

• Developing. Coaching & mentoring

• Succession planning

Customer Driven Excellence

• Organisation is judged by its customers

• Acquisition, retention, growing – Loyalty

• Customer driven excellence to address– Current requirements

– Future desires & market place potential


– Future desires & market place potential

• Build relationships not transactional

• Learn to listen to the “Voice of Customer”

“If you don’t take care of your customers“If you don’t take care of your customers

your competitors will”your competitors will”

Organisational & Personal Learning

• Knowledge share & dissemination

• Continuous improvement

• Change management

• Learning is part of daily work


• Analyses of data

MathematicallyMathematically

Learning > ChangeLearning > Change

Valuing Employees & Partners

• The strength of the chain is determined by the weakest link.

• Policies & strategies to address complete life cycle


life cycle– From womb to tomb

• Acquiring, retaining & sustaining talent

• Vendor development– Treat them as partners

• Quality circles and kaizen groups

Agility

• Capability to adapt to changes

– Rapidly

– Cost effectiveness

– Above all take advantage of it


– Above all take advantage of it

• Agile organisations sustain competitive & volatile industry

• Standardisation & Flexibility

– Contradiction to deal with

Focus on the Future

• Ability to handle disruptive technologies

• Short & long term perspectives

• Strive for market leadership

• Long term commitment to stakeholders


• Long term commitment to stakeholders

• Leadership development

• Succession planning

Managing for Innovation

• “Everything that can be invented has been invented.” Charles H. Duell, Commissioner, U.S. Office of Patents, 1899

• Innovation is not the same as RESEARCH

• A key element of managerial excellence


• A key element of managerial excellence

• New ways of funding is also innovation

If you change the way you look at things, the things you look at change!

Innovation – Various Types

• Finance

– Business Model

– Networking

• Offering

– Product performance

– Product system

– Service

• Process

– Enabling process

– Core process

– Service

• Delivery

– Channel

– Brand

– Customer Experience


Some Guidelines• Don’t be afraid to take more risk and reward failure. Encourage risk taking

• Your company’s energy should be focused on long term innovation which

are game-changing in nature rather than on short term incremental

innovation

• Track the path of your innovation carefully and maintain meticulous records

• The point of innovation is to improve customer experience. Focus on that

rather than only on tech

• If you don’t find a solution for a problem, instead of quitting, find an alternate • If you don’t find a solution for a problem, instead of quitting, find an alternate

way to look at it

• Ideas can come from anywhere. Keep your eyes and ears open to ideas

both from inside and outside

• Don’t be bogged down by failure

• Remember, sometimes innovation happens when you have very limited

time

• Foster a culture of innovation in your company by offering incentives

• Get the right people at the right place and let them interact and collaborate


Management by Fact

• You cannot manage what you don’t measure

• In God we trust - rest data!

• Ensure integrity of data


• Ensure integrity of data

• For an accountant data is gold mine

• Need for balance in measurements

• Use both lag and lead indicators

Social Responsibility

• Never has so much attention bestowed on a item

• Triple bottom line approach

– Economic = Profit


– Economic = Profit

– Environmental = Planet

– Societal = People

• Increasing audits of Corporate Social Responsibility

Focus on Results &

Creating Value

• Focus on key results– Operation was a success but patient died

• Use results to create value for stakeholders


stakeholders

• Focus on creating loyalty

• Plan to manage stakeholder conflicts

• Financial outcomes– Use both lag & lead indicators

– Slice and dice your results

Systems Perspective

• Management of inter-related processes

– Identifying

– Understanding

– Managing


– Managing

• Most difficult area in a organsition

BUSINESS EXCELLENCE

MODELS IN INDIA

• CII-EXIM Award based on EFQM

• Ramakrishna Bajaj National Quality Award based on Malcolm Balridge


based on Malcolm Balridge

• Rajiv Gandhi National Quality Award

2

Strategic

Planning

5

Human Resource

Focus

1 7

Global Business Excellence Models

Malcom Balridge

ORGANIZATIONAL PROFILE:

ENVIRONMENT, RELATIONSHIPS AND CHALLENGES


3

Customer and

Market Focus

6

Process

Management

1

Leadership

7

Business

Results

4

Information and Analysis and Knowledge Management

People ResultsPeople

Enablers Results

The EFQM Excellence Model


Leadership ProcessesKey

Performance

Results

Society Results

Customer Results

Partnerships and

Resources

Policy & Strategy

I n n o v a t i o n and L e a r n i n g

Evaluation Criteria & Scoring Model

S.No Criteria Malcolm

Balridge1 Leadership 120

2 Strategic Planning 85

3 Customer Focus 85


3 Customer Focus 85

4 Measurement, Analysis & Knowledge

Management

90

5 Workforce Focus 85

6 Process Management 85

7 Results 450

Total 1000

Evaluation Criteria & Scoring Model

S.No Criteria EFQM1 Leadership 100

2 Policy & Strategic 80

3 People 90

4 Partnership & Resources 90


4 Partnership & Resources 90

5 Processes 140

6 People; Customer & Society Results 350

7 Key Performance Results 150

Total 1000

Convergence

Core Values Criteria Results


How Do We Do It?!

• Identify the key business factors

• Use the RADAR approach– Results; Approach; Deployment; Assessment &

Review

• Need to Collaborate


• Need to Collaborate– Networking the key

– Multi-disciplinary teams

– Geographical spread

• New Age Innovation N=1; R=G– Insurance companies have started

Business Excellence –

An On-Going Process

• 50% of the companies that Tom Peters featured in his book "Search of Excellence" are not there today!

• Follow the Deming’s PDCA Cycle


• Follow the Deming’s PDCA Cycle

– Plan; Do; Check; Act

• Business cycles is all about B2B

– Back to Basics

To conclude

In a world of futures and options our future is not an option!

So


Let us take a call and put our best foot forward

Documents

In Pursuit of Excellence Opportunities for Chartered Accountants · 20-04-2011 · • Ramakrishna Bajaj National Quality Award based on Malcolm Balridge R Venkatakrishnan FCA DISA(ICA)