Learnings form "In search of Excellence:

7/28/2019 Learnings form "In search of Excellence:

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Strategy Formulation &Implementation

In search of ExcellencePrinciples & ExamplesGroup - 11


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1.A Bias For ActionThe companys ability to not be paralyzed in the decision making process. Do it, fix iare the key words in these organizations. The company is not afraid to try out new thinfact, trying out new things is their modus operandi. Experimentation is the key to thesecompanies success. The concept of Management by Walking Around is looked at in tsection along with the concept of chunking breaking up key management functionssmaller units.

RELATED COMPANY : Pixar Animation Studios


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Principles - CharacteristicsOrganizational Fluidity

High degree of informal communication- Honor all sorts of positive re-enforcement- High volume of opportunities for news swapping

Have room for excellent communication Free flow of ideas Management by Walking About CEO Being Approachable - visibleHow is it related to the company ?? No cubicles in the office gives an opportunity for open communication Free flow of ideas between teams, weekly informal group meetings Every week squads visit to check people's performance by way of review co-ordination and superv When Steve Jobs was CEO, Top Management used to personally communicate with all employe


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Chunking Cutting across work together Breaking things to have org - fluidity Informal groups Taking initiatives without awaiting orders Task force - right people for right work

How is it related to the company ?? No rigid structure for teams Multiple initiatives were taken up independently in movies like A Bugs life, Toy Story. The best upon after lead time Groups were formed on personal interests on projects Various teams working on different projects Weekly task squads reallocate teams according to requirement


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Experimenting Organizations Willingness to try new things Encouraging new ideas innovative themes

How is it related to the company ?? Pixar stands out for its movies that were revolutionary and completely new animated

characters and movies like Ratatouille, Monsters Inc. ,The incredibles The First people to try for ideas like Cars , Wall E etc. some of the most famousanimated characters were the innovation of Pixar studios


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2.Close to the CustomerLearning from the people served by the business

RELATED COMPANY : Virgin Company


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Customer obsession- Being obsessed with Customer Value-Being Explicit about delivering a particular kind of Value- Building long term relationships

Service obsession- Sale begins after Sale (Post Sales Service)- Service oriented towards a certain problem or preference-Intensive Involvement of Senior Management

How is it related to the company ??Virgin has got great customer focus. Some instances include: Virgin going back private to protect customers interest Virgin's explicit focus for different kinds of value across companies. For instance Virgin America talkstylish and comfortable passage as the most important aspect of value, while Virgin Galactic defines it athe world experience with safety

Principles - Characteristics


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Characteristics Quality Obsession Niche manship

-Spirit of getting to know the customer well- Narrow Focus

Listening to users-Understanding customer needs- Make customers party to product /service

How is it related to the company ??Virgin Atlantic not only delivers on quality of service but also innovative ways of looking at quality like Having therapists and manicurists onboard Having stand up bars in Virgin Virgin defines quality as entertainment, in a similar context Virgin ended up buying a fleet of 747s

they didn't get a loan for seatback videos in Virgin Atlantic


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How is it related to the company ?While Virgin has forayed into multiple ventures with different scope and focus, Some of its ventures alike: Virgin Galactic-- Space Orbital Flights for non-astronauts Virgin Mobiles started with differentiated pay as you go plans to make value available lower in theSome of Virgin's insights into Customer service: Be the customer: Richard experienced bad service as a customer on board airlines. VAA focuses ocompetitors failures and inefficiencies. This helps run Virgin Atlantic differently Work with customers: VAA has a program wherein Willing customers are made tasters when seleto be offered onboardWork with customers: VAA has a program wherein Willing customers are made tasters when selectinbe offered onboard Virgin atlantic has been time and again lauded for its service, this includes:

a. Having clean lossb. Flights which arrive on timec. In-flight entertainment systems work

ii. Richard Branson takes personal interest in matters relating to customers, both internal and externa


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3.Autonomy and Entrepreneurship-PrinciplesIn this The book argues that innovation is tied to giving people the freedom to try many things and many mistakes. According to them, this is especially important in industries that constantly have to their products. Successful companies understand that innovation usually does not come from the tofrom the bottom up.The main innovators are the ones that have direct contact with the product. These companies respindividuality and allow the employees to fail a considerable amount of time. In fact, the authors staof the ideas fail most of the time. This is because they understand that innovation and success is a ngame. The probability of success become much higher the more times you try.

RELATED COMPANY : TATA group


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Intense Communication Forcing Devices. Tolerating Failure Deflect, but don't kill an idea Organizational Culture supports innovation Nichemanship


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Characteristics Messiness around edges. Lack of co-ordination. Internal competition. Indulging in madness. Creative abrasion of ideas.


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Applications The Tata Group's Internal Innovation Competition make it possible to thrive on discord but yet bensynergy. It has in the past produced products like:i. Software to Automate Telecom minute exchangeii. Patented Soda ash unloaded technology. Showcased failed ideas such as

a. Failed technologies for NANOb. Failed Continuous Variable Transmission technologiesc. Adenosine drug advinus Therapeutics.

This Helps instill the belief in the Tata group that innovation is important


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4.Productivity through peopleThis is noted that a positive company environment where employees were treated with respect, sthe rewards and felt they were part of the company like an extended family reflected in its succeswere more productive. Treating rank and file employees as a source of quality

RELATED COMPANY : Southwest Airlines


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Characteristics Management by objectives

- Develop quality circles Respect for the individual

- Dignity and respect- Treat them as the primary source of productivity gains

How is it related to the company ?? We have divided the goals and objectives of Southwest airline into two sections

(financial & strategic), as each one of them employed a different path in determining. Southwest's unique culture, called "goofiness" by some individuals, keeps the morale of its employ

Southwest is very serious about keeping its costs down Southwest's employees have never gone out on strike


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Characteristics Not to be hire and fire company Treat them as partners First there should be highly capable, innovative people through the organization

-Feedback systems and Incentive programs Tough minded respect for the individual and the willingness to train him provide training and opportunity for development to our productive people

-improve the skills and expand their career opportunities quality and reliability

-quality, reliability and performance-Loyalty in relationships

How is it related to the company ?? Southwest airlines had the better job security than any other company in the airlines industry even

recession times Getting the resources those who are in excellent job in their respective fields This is believed so strongly that Southwest qualifies a customer service candidate for employment

attitude, not experience. The company believes that you can teach a person how to deliver qualitybut the attitude must be brought to the job.


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At Southwest Airlines, we offer our Employees not only the training they need to do their jobs, bu

training they want to advance their careers. We provide internal training programs but also encourEmployees to attend external training and further specialize in their respective fields.


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5. Hands on Value DrivenThis is a style of management that involves heavy involvement with top management. In contras

less successful companies, top management is involved in every level of the organization. They make fstores and are in touch with the operations at the ground level of the organization.

This chapter also discusses company morale, and the role of values in shaping the organization. viewed as the value shaper of the organization and his ability to live by and communicate these values organizations success. They incorporate legends and myths into the company story line take pride in stories to their employees. The moral tone is set by top members of management. They must be onwhen it comes to message coherency and they must lead by example.

RELATED COMPANY : Amazon


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Principles - CharacteristicsValue Driven

What the company stands for What the company takes pride in Ground principles that run the company Striking value the company wants to deliver Articulation and content of values Have a shared vision - common visonHow is it related to the company ?? Customer centricity Embracing Risk and Entrepreneurial culture. Bezos, the public face of the company has faith of c

to his open nature and Growth centric customer focused attitude. Explorers rather than conquerors to reach all levels of customers Working backwards starting from customer, Amazon for years stressed on creating value through expansion and increasing customer base


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Belief Sound set of beliefs Faithful adherence to the beliefs They should be value drivenBasic beliefs :Belief being the bestBelief in importance of executionBelief in importance of peopleExplicit belief in recognition of economic growth

Long term thinking, customer obsession, and willingness to invent Amazon hires based on frugality, high hiring bar, and innovation Has little patience with incompetence, and does not believe in compromise on quality Centralized and integrated decision making, along with attention to detail ensures speed executio Likes to be part of a team.

How is it related to the company ??


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Leadership[ Ceo Jeff Bezos]

Leader being a micromanager - eye to detail Should drive enthusiasm Stand for goals He should be crystal clear in his objectives Sincere effort to inspire people Have his mark on the decision making Effective leader by superb execution Preach values by strict implementation

How is it related to the company ?? Bezos gives attention to very minute details right from contractual clauses to product finishing. Hemanager Micromanager His only objective is to be customer centric and sustain growth through disruptive innovation Reviews every decision, asks for a six page memo on every decision made A Hands on approach


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6. Stick To The Knitting

Business should stay close to what they know. This can be summed up by the words of Robert W.Johnson, former Johnson and Johnson chairman when the stated: Never acquire a business you doknow how to run. When you find something that works you should stick to it. Organizations that asuccessful at branching out stick close to what they know. They dont venture out too far into unfamterritory.

RELATED COMPANY : Siemens


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Principles and Characteristics

Unchannel Diversification- Diversification into unrelated industries. No Trial and error- Doing it right the first time, time isnt a major constraint. No compromise on quality- If a product fails to comply to the standards, reject it. Sustainability- As said above, it should be long term.


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Applications Siemens is well diversified. The industries include :

a. Healthcareb. Financial services.c. Building Technologies.

Environment, business and society governs all activities Siemens is one of the most ethical companies. Natural resources used sparingly.

For instance Wind turbines make use of Integral blade technology which enable maximumextraction of power. High efficiency burner technology produces less amount of toxic waste.


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Siemens is one of the most ethical companies. Natural resources used sparingly.

For instance Wind turbines make use of Integral blade technology which enable maximumextraction of power. High efficiency burner technology produces less amount of toxic waste.


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7. Simple Form, Lean StaffThis principle revolves around the complexity that comes with the big corporation, and the busineattempt to respond to that complexity by instituting complex designs. The authors argue that it is ethat employees are able to understand the process, thus they advocate that the process needs to besimplified. The issue of environmental change seems to throw some employees for a loop. Therealways some unchanging element to the department that the employees understand is more or lesspermanent. Another important constant is the unchanging nature of company values.

RELATED COMPANY : Siemens


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Principles and Characteristics

Matrix organization-Follows a lean system. Employee satisfaction- Creating a win-win situation to both the company andemployees. Growth through mergers and acquisitions. Simple, autonomous structure is followed. Focus is mostly on the qualitative work.


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Applications

Everyones idea is taken simultaneously, rather than one after another thus savingtime. The times Herald in 2004 indicated that Siemens was one of the best companies inthe world to work for. Qualitative analysis such as tissue strain analytics through ultrasound, automated andqualitative modeling, model based behaviour prediction. Tries to maintain long term relations with suppliers, vendors and clients. Initiatives include:

Market development boards.


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8. Simultaneously loose Tight PropeThis revolves around the organizations ability to adopt both centralized and decentralized elemenorganization. This centralized element typically includes several core values that the leaders of theare adamant about. The business is typically more decentralized at the shop floor level, granting associates a certain amount of autonomy in handling their affairs

RELATED COMPANY : Taco Bell


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Principles - CharacteristicsCo - existence of direction and autonomy

Strict adherence to some important values Having faith in the system Induce discipline to have goal congruence Encourage entrepreneurship - innovation Attention to detail Develop value system through setting standards

Taco Bell lays emphasis on Value leadership under Yum Brands to bring to the customer new opthrough emphasis on Energy, opportunity and fun Same kind of interiors, everywhere, food taste standardized and minutely checked Supplier integration and development programs for quality of raw materials



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Autonomy Giving room to perform Maintain Quality standards Regular experimentation Encourage internal competition Make them feel empowered - sense of importance Maintain fluidity and flexibility

ARMs, and RMs are allowed time to showcase performance with guidance and store managers areand given enough powers to make decisions pertaining to ground level operations

Conforms to ISO:9001 , implements TQM Process & Product innovations like double assembly line, increased capacity and different localize

minus,etc Incentives by way of Promotions for performance to all levels within the organization The Restaurant manager of each outlet independently takes care of daily operations of it


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Learnings form "In search of Excellence: