World Class

Early 1990s-Opening of economySlogans of Globalization:

Export or ParishWorld ClassQuality of Products and ServicesCustomer Satisfaction

After more than decade now…Let us take a stock on World Class

VisionWhere we want to be when

Vision statement

Framed at reception/DeskGuiding force vs wishful statementsVision can easily go haywire

Still every organization have to have oneWhy?

“If you have no clear direction,it is tough to know or care if you areheading where you want to go”

Required even if there is no globalization

Most important purpose of vision:Everyone knows what need to be doneto achieved the goal

Decision making and control is not required

Why Vision

Strategy

In a competitive environment:

Some companies are loosing market share -Others are gaining it

Some are doing well-Others are bleeding to death

Some companies redefine industry-Others just follow blindly

Answer lie mainly in strategic framework

Strategy played an important role

What is a strategy?

Usual definition-Relationship between the companyand its competitive environment

Allocation of investments betweenvarious opportunities

Long term prospective requiringinvestments and commitments

Strategy

New concept:

The strategy is for a company to effectively balancebetween its resources and the opportunities

It means:

Resource allocation is a strategic task in pursuit ofstrategic objectives and march towards worldleadership in those objectives

Task to be very focussed with all out aggressivenessand stretch

Strategy

New Definition:

Allocation of minimum resources as well asenergizing them to get required productivityout of them

Resources:

Money, machine or manpower

Technology, Space

Strategy

ProductivityMan, money, machine

Productivity of Technology Productivity of technology as a competitive edge-

Otherwise bleed to deathSmaller companies are better suited

Productivity of SpaceVirtual work4 people running business

World class productivity does not mean maximumoutput from the available inputsBut...World class productivity mean getting the requiredoutput with minimum inputs

World-class TeamsWorld-class companies builtworld-class teams

A company to have a vision and every one to worktowards it is not possible, unless walls between crossfunctional teams are broken down

World class products and services require worldclass processes to deliver them

These products and services are dependent on peoplewho produce them

Therefore, the focus gets turned on the world classteams

Let’s look at three models of teams

Conventional Team High Performance Team World Class Team

Can’t be done What will it take to do Let’s get on with it

Not my/our job How can I/We help? I/We will do it

Predictive tasks are ok Possible tasks are ok Leading edge tasks are ok

Change resisted Change accepted Change welcome

Conventional Team High Performance Team World Class Team

Telling Supporting Coaching

Control Delegation Empowerment

Manager Facilitator Coach

Leadership of those teams

World-class companies thrive for world-classquality with right processes in place

Without world-class processes, hoping forquality products and services is like tryingto make a radio without know A-B-C of electronics

When you have best processes in place, youare bound to get best outputs- It is like mistakeproofing

World-class Processes

Once again processes need not be limited tomanufacturing processes-It means process ofwhatever we do

When we are talking about world-class products,we are talking about defect rates of world-classstandards- Let it be typing, preparationof purchase orders or preparation of cheques

World-class Processes

Today, world-class companies have reachedquality standard of four sigma level. Whichmeans 63 defects per million operations (0.0063%)

Companies like Motorola and GE have kept theirtargets of process defects of 6 Sigma level whichmeans 0.002 defects per million (0.000002 %)

Today, in India, text books are still talking of5%-19%-20% in their examples- management schools- future managers-Sad state of affairs

World-class Processes

Some of the world-class processes:

Just in time (JIT)Single piece flow(SPF)Quality at SourceStatistical Quality Control(SQC)Statistical Process Control(SPC)Quality to built-inQuality to design-inValue engineeringRe-engineeringContinuous training (Education)

World-class Processes

The information technology revolutionsince the invention of microprocessoralmost four decades back

A company can not become world-class orglobal player, unless it embraces IT as one of themeans of achieving world standard of quality,productivity, service and customer satisfaction

Information Technology (IT)

IT came in as a tool to automate some of the repetitiveoperations:

Typing, calculation of figure,management of material procurement andmanagement of financial resources

Today, IT provides packages for enterprise resourcemanagement by linking field marketing with factoryand its suppliers

Information Technology (IT)

The whole process of business cycle of orderbooking to quality manufacturing to collection,flows thru computer system

The latest status is available to everyone inthe business cycle and appropriate actionsat right time are taken for enhancement ofresource productivity

Information Technology (IT)

In today’s world, with internet facility, even a faraway customer can track his/her order thrusuppliers’ computer systems

The difference in time of the day around the globehas lost its relevance as the customer can log onto the suppliers’ computer systems and lodge acomplaint or see the status of the job without humanintervention

With the introduction of e-commerce, the completecycle of order placing to payments can be donethru internet

Information Technology (IT)

Web sites where customers areable to see in and out of the products fromvarious angles on their monitors, at thecomforts of their homes, before orderingexactly what they want. Whether it is a particularcolor of the car or power steering.

IT/Internet has become an integral part of manyorganizations

Information Technology (IT)

World-class organization adopt TQMculture as basis for their businesstransactions

Culture is tacit understanding ofrules( often un-written) for doingevery thing in an organization

Process of change is very slow asold cultures are difficult to die

But today, organizations don’t have any choicebut to change

TQM

TQM

Basically TQM is customersatisfaction thru employee involvementand continuous improvements

Customer attention is focus

Each and every one has a customer-Internal/external ( receiver of out-put)

Purchase ProductionProduction Quality

and so on

When work flow chart of the organizationis drawn and displayed at central location,the customer-supplier relationship becomescrystal clear to every one

Internal Customer

ISOSince last decade, customers demands fordealing with companies who are approvedby International Standards Organization(ISO)

Trend started with foreign customers but today,most of the Indian customers are insisting on ISOas a minimum requirement

This standard is continuously evolving and todayit insists on societal and environmental protection

Therefore, it is not enough to have ISO approval forsystems and monitoring norms but continuouslyimprove upon internal systems not only for theconsideration of the customers but society as a whole

Although there can be many more attributes for aworld-class

One most important factor is to have world-class ChiefExecutive Officer (CEO)

Without world class CEO the march towards world-classwill be short lived or just a wishful thinking

As mentioned earlier, world-class CEO is:A coachempowers peopleEveryone is important, however small or big

Chief Executive Officer (CEO)

Like for a living body to work smoothly eachand every organ or part is important, similarlyeach and every resource is important fororganization, even though each plays differentrole

CEO continues to nurture the organization andacts a leader who inspires rather than a managerwho tells what to do

He/she conveys the message clearly and thruactions rather than rules

In general, cultures are built on trust and allto follow

CEO

World-class companies have:

Vision for everyone to know the pathStrategy to know how and when to get thereTeam that clicksWorld-class processes in place for

everyone to followMost efficient operation thru state of art

information technologiesTQM CultureApprovals from world standards organization

and World-class CEO

Summary