Lassib 2012 industry advisory report on operational excellence preview

LASSIB Society | Industry Advisory Report on Operational Excellence 2012 Page | 2 | ©2012 LASSIB Society, All Rights Reserved.

2012 INDUSTRY ADVISORY REPORT ON

OPERATIONAL EXCELLENCE

©2012 LASSIB Society, All Rights Reserved

THIS REPORT IS MEANT FOR DISTRIBUTION TO

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Table of Contents

Foreword ................................................................................................................................................................ 4

Executive Summary ................................................................................................................................................ 6

Operational Excellence Panel ................................................................................................................................ 8

1. Current state of operational excellence in industry .............................................................................. 10

2. Industry Challenges, Influencers and Interventions .............................................................................. 12

2.1. Challenge: Constrain of senior management to focus on strategy and vision, due to operational

challenges ......................................................................................................................................................... 12

2.2. Challenge: Organizational inertia. Resistance to Adoption of technology & industry best practices 14

3. Crafting a sustainable future .................................................................................................................. 16

3.1. Adapt to Change.................................................................................................................................. 16

3.2. Compete in a global market place ...................................................................................................... 16

3.3. Adherence to rules of land and regulatory compliance..................................................................... 16

4. From Now to the new world .................................................................................................................. 17

4.1. Operational Excellence will be the responsibility of everybody ..................................................... 17

4.2. Greater emphasis ON FIRST time right ............................................................................................... 17

4.3. Be responsible to the community ...................................................................................................... 17

5. About LASSIB Society .............................................................................................................................. 18

6. About LASSIB CXO Round Table Conferences ........................................................................................ 18

7. LASSIB CXO Round Table Conference Supporters.................................................................................. 19

8. Other Contributors to the LASSIB CXO Round Table Conference ......................................................... 19

9. How you can leverage and support LASSIB Society ............................................................................... 20

COPYRIGHT

©2012 LASSIB Society, All Rights Reserved. No part of this document may be modified, deleted, or expanded

by any process or means without prior written permission from LASSIB Society.

THIS REPORT HAS BEEN MADE POSSIBLE WITH THE SUPPORT OF LASSIB SOCIETY PARTNERS.


FOREWORD

Welcome to the Industry Advisory Report on ‘Operational Excellence’. This report captures the synopsis of the discussion and analysis held by the panel on Operational Excellence at the LASSIB CXO Round Table Conference held in Mumbai on 14

th July 2012. The conference had six focused themes

driven towards achieving Organizational Excellence. These include: 1. Delivering Customer Value

2. Employee Satisfaction & Engagement

3. Improving Profitability

4. Learning and Development

5. Operational Excellence

6. Revenue Growth

All the above, including Operational excellence are key to achieving excellence within any organization, be it a part of any business domain, geography or size. In this report we focus on the central views discussed towards state of Operational excellence and continuous improvement initiatives that organizations are working towards, or need to think about in order to excel. The exciting discussions and perspectives brought forward by a diversified set of CXOs indicate the current state of operational excellence practices in the industry, along with the challenges, opportunities for improvement and expected trends in the coming years. As economies and industries across the globe face difficult times, these findings serve a critical purpose. The point of views and suggestions in this report are generic and thought provoking in nature. This has been purposely done without providing references to specific industries as these can be applied to any organization striving for operational excellence. These findings should be used not only by functional leaders to gauge their readiness for change, but also by CXOs across the organizations to define how to best structure and align their continuous improvement initiatives to match the overall goals and vision of the organization. Please note that this report is the consolidation of the point of views of the panel in their individual capacity and is not endorsed by their respective organizations. This report has been made possible by seamless support of the Panel Chair, Panel Chief Editor, Panel Members, the LASSIB team and 9Pixels as the media partner for LASSIB. We hope you find the report valuable and helpful when defining the direction of your improvement initiatives.

Arun Hariharan

(Mr. Arun Hariharan) Panel Chair – Operational Excellence Panel, President, Quality and KM Reliance Capital

(Mr. Radhakrishnan Balagopal) Chief Editor – Operational Excellence Panel, Lead Consultant Co-Founder – LASSIB Society



EXECUTIVE SUMMARY A decade ago the top priority list of a CXO used to be a very simple, crisp list including areas like

enhancing core competencies, moving work to low cost destinations, capturing market share in

emerging markets and so on. Today, post Lehman and the global credit crunch it is a new era, an era of

black Swans and rapid technology obsolescence. These dynamic market developments have proved that

they are capable of turning tables for market leaders by eroding their customer base and market share,

sometimes in less than one quarter of a year. Organizations across the globe are facing unique

challenges which are not always easy to comprehend and are influenced by many uncontrollable

variables. These challenges could range from currency fluctuations, sovereign debt crisis to global

terrorism. The business confidence is low and every penny spent is being questioned. In this new world

where raising capital for expansion is extremely difficult and consistent cash flows are a key priority,

operational excellence in core business processes seems to be the focus areas for each CXO.

Given the above state of affairs, the challenges that organizations are grappling with include:

Achieving Operational Excellence is viewed as the responsibility of senior management and

quality team only, and not a responsibility of everyone

Lack of a consistent long term, common vision for the entire enterprise

Obtaining Continuous Customer feedback as a vital input to improve products and services

Innovation and breakthrough improvements, as enterprises can no longer sustain themselves

through incremental improvements

Enterprises are not investing in their biggest asset – People, in their drive to improve

operational efficiencies

Some of the interventions required to address these key challenges include:

Enterprises have to think global and long term. It is not good enough to be better than your

competitor(s) in your backyard. In this globalized world, enterprises need to constantly identify

early, changing customer behaviors, analyze patterns and trends, and innovate to create a

niche for themselves. They need to build an organizational culture which will not only adapt to

change but welcome it. They need to assess their organization’s processes against globally

accepted performance measures and models like Malcolm Baldrige National Quality Award,

European Foundation of Quality Management (EFQM) and achieve breakthrough improvement

by adopting Lean Six Sigma.

The need of the hour is not about being good enough, in what is currently being done in their

day to day operations and improving incrementally. That is a must for any organization to stay

alive. Enterprises have to constantly benchmark with competition across the globe. This

benchmarking should enable the organizations to innovate and achieve breakthrough

improvements.

Enterprises need to act responsibly to communities and strictly follow the rule of the land.

Compliance risks like non adherence to regulations and safety measures, can catapult any

market leader out of trade.


From now to the new world

In the long run, enterprises should build an organizational culture where, irrespective of

their functions, Operational Excellence becomes everybody’s responsibility and each

employee strives towards adding value to business and end customer.

The life cycle of a product or service would need to be shortened keeping in mind that time

to market would become the key differentiator for all organizations. In order to achieve this,

enterprises would have to invest heavily in processes which ensure First Time Right (FTR)

and First to Market (FTM).

In tomorrow’s world, enterprises will be valued not only based only on their business

potential and top and bottom-line growth, but also based on how responsible they are to

the community in which they operate, to mother nature, and ultimately to their end

customer(s).


OPERATIONAL EXCELLENCE PANEL

Panel Chair

Mr. Arun Hariharan, President, Quality & Knowledge Management, Reliance Capital

Panel Members

Mr. M K Mehta Senior General Manager, Mining Support, ACC Ltd

Mr. Haresh Hiranandani, Vice President, Service Quality, Kotak Mahindra

Mr. Prateek Kumar, DGM, Mining Support, ACC Ltd

Mr. Rajesh Kumar Dube, DGM – PEX, Cognizant Life Sciences

Mr. Sameer Inamdar, National Head - Quality & Process Excellence, Bajaj Finserv – Lending


Panel in Deep Discussion Panel on Stage

Ms. Uma Seshadri, Deputy Head, Quality (SAP BU), L&T Infotech

Panel Chief Editor

Mr. Radhakrishnan Balagopal, Lead Consultant, Capgemini


1. CURRENT STATE OF OPERATIONAL EXCELLENCE IN INDUSTRY In this



2. INDUSTRY CHALLENGES, INFLUENCERS AND INTERVENTIONS

2.1. CHALLENGE: CONSTRAIN OF SENIOR MANAGEMENT TO FOCUS ON STRATEGY

AND VISION, DUE TO OPERATIONAL CHALLENGES

2.1.1. COMMON INFLUENCERS BEHIND THESE CHALLENGES AS OBSERVED IN THE

INDUSTRY


2.1.2. KEY INTERVENTIONS THAT NEED TO BE

PLANNED TO ADDRESS THESE CHALLENGE

-


2.2. CHALLENGE: ORGANIZATIONAL INERTIA. RESISTANCE TO ADOPTION OF

TECHNOLOGY & INDUSTRY BEST PRACTICES

2.2.1. COMMON INFLUENCERS BEHIND THESE CHALLENGES AS OBSERVED IN THE

INDUSTRY Ri


2.2.2. KEY INTERVENTIONS THAT NEED TO BE

PLANNED TO ADDRESS THESE CHALLENGE


3. CRAFTING A SUSTAINABLE FUTURE

3.1. ADAPT TO CHANGE Any change is painful in any organization, it brings with it, its

is also essential to manage the change.

3.2. COMPETE IN A GLOBAL MARKET PLACE

The whole world is evolving to become a single market place

.

3.3. ADHERENCE TO RULES OF LAND AND REGULATORY COMPLIANCE

regulations and working with the Government collaboratively.


4. FROM NOW TO THE NEW WORLD

4.1. OPERATIONAL EXCELLENCE WILL BE THE RESPONSIBILITY OF EVERYBODY In a globalized world, the competition will be so high that operational excellence and

4.2. GREATER EMPHASIS ON FIRST TIME RIGHT

The life cycle of a product or service would have shortened to such an extent that,

4.3. BE RESPONSIBLE TO THE COMMUNITY All organizations have a commitment towards the community and the environment


5. ABOUT LASSIB SOCIETY LASSIB Society is a not-for-profit organization focussed on ‘Nurturing Next Generation Governance Globally’.

LASSIB Society’s mission is to create and provide the world's most useful ‘Governance Management’ resource

centre and a set of certification programs, available for Individuals, Organizations and Governments at the

lowest cost.

Based on the principles on Gandhian Engineering, we deliver cutting edge industry research and enhanced

value to the community at large.

LASSIB Society organizes multiple events, enabling face-to-face interactions and virtual interactions among the

global community.

6. ABOUT LASSIB CXO ROUND TABLE CONFERENCES LASSIB Society hosts a series of high profile; power packed, peer-to-peer, invitation-only Round Table

Conferences for C-Level executives with a focus on ‘Nurturing Next Generation Governance Globally’.

These conferences are a rare opportunity for CXOs to network with fellow CXO’s, share their experiences,

learn from other’s successes and best practices. These conferences consist of a predefined set of themes

which are most relevant to the industry, in that specific location. The CXO panel for each theme is engaged in a

brainstorming session to understand the current state of the industry, the challenges, best practices and

industry outlook for the future. All inputs from these sessions are captured in the Industry Advisory Reports

(IARs) like this one.

These IARs are a valuable resource for the industry at large, and serve to provide key insights that can be used

by industry leaders to shape the strategy for their organizations.

Please refer to http://www.lassib.org for details of all events of LASSIB Society.

http://www.lassib.org/


7. LASSIB CXO ROUND TABLE CONFERENCE SUPPORTERS The Round Table Conferences would not have been possible without the support of the following:

Minitab remains the world's leading software for teaching statistics. More

students worldwide have learned statistics using Minitab than any other

software. Minitab also is the software used most often in Six Sigma, the world’s

leading quality improvement methodology.

Lucid Infotech specializes in collaborative business productivity software. It's

latest product, OneSpace, provides a secure corporate workspace for project,

process and content management in an easy-to-use UI for quickest user

adoption.

9 PIXELS Entertainment is an Integrated Professional Media and Entertainment

(M&E) company which creates and produces large scale innovative and

profitable media concepts across all areas of entertainment and brings in over a

decade of industry experience in the areas of Film and TV. Their goal is to

maximize client's growth potential by providing specialized marketing services

to expand their brand. They provide clients the opportunity to reduce their to-

do list by enlisting 9Pixels to handle specific areas of expertise.

8. OTHER CONTRIBUTORS TO THE LASSIB CXO ROUND TABLE CONFERENCE Role Full Name Designation Organization

IAR Editing Ms. Shilpa Kota Secretary LASSIB Society

IAR Reviewer Mr. Pavan Kota Executive President LASSIB Society

IAR Design and Launch Mr. Srikanth Kodavanti Chief Executive Officer 9 Pixels

Conference Lead

Facilitator

Mr. Rana Pratap Singh Executive Vice President LASSIB Society

Conference Coordinator Mr. Ved Prakash Singh Coordinator LASSIB Society

Conference Coordinator Mr. Varun Khare Coordinator LASSIB Society


9. HOW YOU CAN LEVERAGE AND SUPPORT LASSIB SOCIETY Although LASSIB Society is a not for profit organization, it does not believe in raising funds through charitable

means, without providing direct value to the contributor. There are many different ways in which

organizations, institutions, governments and individuals across the globe are working with LASSIB Society to

deliver value to themselves and their customers. LASSIB Society is proud to be associated with all of them in

developing and delivering cutting edge solutions that have not only delivered quantified business value to

them but also added thought leadership to the industry at large. Below are some ways in which you can

leverage and support LASSIB Society.

Leverage LASSIB for your initiatives

Benefits to you Support to LASSIB Society

Become an Individual or Organization Member of LASSIB.

Visit https://lassib.org/index.php/membership to know more about LASSIB membership options.

Access complete knowledge base including training materials, best practices, case studies, videos and webinars from LASSIB Society

Network, learn and contribute to the fastest growing community of specialist, senior leaders from the industry

Get latest updates, insights and research from the industry delivered to your Inbox

Funds collected through membership fees are used to maintain and grow LASSIB knowledge base.

Leverage Training and Certification in themes of Organization Excellence.

Get trained from the leading experts from the industry who bring together years of experience and best in class training skills, tools and technologies

Acquire not only knowledge but skills to implement the knowledge in real life scenarios

Attain internationally respected certifications thereby adding value to your organization and yourself

Join the growing panel of Accredited Training Providers (ATP) and Accredited Test Centers (ATC) of LASSIB Society to deliver value within your organization.

Training and certification fees charged by LASSIB Society are the lowest in the Industry in order to ensure these key components are available within reach to masses. The fees charged helps cover the cost incurred by LASSIB Society for hiring trainers and issuing certificates.

Consult with LASSIB experts to deliver business and customer value

Solve organization problems, create strategy, deliver customer value through best practices and proven tools & techniques

Consulting fees derived by LASSIB Society aids LASSIB to fund research, host events and provide free consulting services to organizations which cannot afford to pay yet.

Participate in LASSIB Events

Network, brainstorm, and learn from industry leaders, face to face, over exciting discussions

Sponsorship costs and delegate fees assist LASSIB in conducting these events and spreading the awareness within the community.

Participate and leverage Industry Research

Understand the trends in the industry

Identify common challenges and best practices

Hear from experts on future forecasts

By participating in building these reports, you provide the opportunity to LASSIB to share your knowledge with the rest of the industry.

Please refer to http://www.lassib.org for details on LASSIB Society or

Send a note to [email protected] to get connected to a LASSIB consultant or

Call +91-9246185187 (India) to speak to a LASSIB Evangelist directly.

https://lassib.org/index.php/membership

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THOUGHTS FROM THE PANEL

"I would like to compliment the effort that has gone into creating this report. The most important aspect of this

report to my mind is that it condenses the insights of professionals with years of experience in the field from

diverse industries. Personally, I found being part of this panel to be a valuable learning experience."

Mr. Arun Hariharan (Panel Chair)

President, Quality & Knowledge Management, Reliance Capital

“The industry advisor reports (IAR) are a humble endeavor by LASSIB to bring together the industry titans to

brainstorm on the current challenges and propose long term solutions for addressing these challenges. The IAR

on operational excellence is one among them. The industry advisor report on operational excellence gives a

synopsis of what CXO’s across industries shared about the current and future operational challenges and

antidote for addressing them. This report is a testimony of what CXO’s felt about how organizations and

employees perceive operational excellence and how nimble they are to acclimatize to the changing

environments and customer needs. It also reiterates the fact that there is no quick pill for excellence and the

necessity to think, invest and act on long term goals. The report concludes by their view points on how

operational excellence will be perceived in the new world.”

Mr. Radhakrishnan Balagopal (Panel Chief Editor)

Lead Consultant, Capgemini

Headquarter Address:

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