Master Sun Consulting Master Sun Consulting Balanced Scorecard - Tool for Value Creation Balanced Scorecard - Tool for Value Creation Business Audit: Agenda for Scorecard Led Business Audit: Agenda for Scorecard Led Transformation Transformation Strategy Maps to Individual Scorecard Strategy Maps to Individual Scorecard Caselet Service Industry : ICICI Bank Caselet Service Industry : ICICI Bank Caselet Manufacturing : Texmaco Jakarta Caselet Manufacturing : Texmaco Jakarta Caselet Marketing & Sales : Tata Steel Wire Caselet Marketing & Sales : Tata Steel Wire Division Division
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Master Sun Consulting Balanced Scorecard - Tool for Value Creation Balanced Scorecard - Tool for Value Creation Business Audit: Agenda for Scorecard Led.
Value Creation: Intangible Assets Intangible Assets Do Not Have A Direct Impact on Financial Results — They Have Second- or Third-Order Impacts Intangible Assets Do Not Have A Direct Impact on Financial Results — They Have Second- or Third-Order Impacts Conventional approach to managing financial & operational indicators insufficient Conventional approach to managing financial & operational indicators insufficient Balanced Approach to Strategy Implementation should includes focus on customer/stakeholder & learning, growth & innovation Balanced Approach to Strategy Implementation should includes focus on customer/stakeholder & learning, growth & innovation Understanding & managing/leveraging inter-relationships between the above areas necessary for value creation Understanding & managing/leveraging inter-relationships between the above areas necessary for value creation Service Quality Customer Confidence Revenue Customer Retention Training Information Technology
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Master Sun ConsultingMaster Sun Consulting
Balanced Scorecard - Tool for Value CreationBalanced Scorecard - Tool for Value Creation
Business Audit: Agenda for Scorecard Led Business Audit: Agenda for Scorecard Led Transformation Transformation
Strategy Maps to Individual ScorecardStrategy Maps to Individual Scorecard
Caselet Service Industry : ICICI BankCaselet Service Industry : ICICI Bank
Caselet Manufacturing : Texmaco JakartaCaselet Manufacturing : Texmaco Jakarta
Why Need a Balanced Scorecard?Why Need a Balanced Scorecard?The Source of Value Has Shifted From Tangible to Intangible
Assets
Intangible Assets
Tangible Assets
38% 62% 85%
38%
15%
62%
1982 19921 20002
percentage of market value related to…
1. Brookings Institute2. Baruch Lev analysis of
S&P500 companies
Value Creation: Intangible AssetsValue Creation: Intangible Assets
Intangible Assets Do Not Have A Direct Impact on Financial Intangible Assets Do Not Have A Direct Impact on Financial Results — They Have Second- or Third-Order ImpactsResults — They Have Second- or Third-Order Impacts
Conventional approach to managing financial & operational Conventional approach to managing financial & operational indicators insufficient indicators insufficient
Balanced Approach to Strategy Implementation should includes Balanced Approach to Strategy Implementation should includes focus on customer/stakeholder & learning, growth & innovation focus on customer/stakeholder & learning, growth & innovation
Understanding & managing/leveraging inter-relationships Understanding & managing/leveraging inter-relationships between the above areas necessary for value creationbetween the above areas necessary for value creation
Service Quality
Customer Confidence RevenueCustomer
Retention
Training
InformationTechnology
Balanced Scorecard as a Tool for Balanced Scorecard as a Tool for Business ExcellenceBusiness Excellence
Malcolm Baldrige Balanced Scorecard
Leadership Learning & Growth Perspective
Human Resource Capital
Business Results
Process Management
Strategic Planning Strategy Map
Learning & Growth Perspective
Internal Process Perspective
Customer Focus Customer Perspective
Targets, Financial Perspective
Balanced ScorecardBalanced Scorecard
Balanced Scorecard’s key theme is not about Balanced Scorecard’s key theme is not about Measurement as the term would outwardly Measurement as the term would outwardly
convey convey Its about Its about
Value creation -Execution of StrategyValue creation -Execution of Strategy
Introduced in 1992, by Robert Kaplan and David Introduced in 1992, by Robert Kaplan and David Norton, the Balanced Scorecard is the most commonly Norton, the Balanced Scorecard is the most commonly used framework for ensuring that companies execute used framework for ensuring that companies execute their strategiestheir strategies
Today, about 70% of the Fortune 1,000 companies Today, about 70% of the Fortune 1,000 companies utilize the Balanced Scorecard to help manage utilize the Balanced Scorecard to help manage performance.performance.
Balanced Scorecard Links Vision & Balanced Scorecard Links Vision & Strategy to Personal ObjectivesStrategy to Personal Objectives
VISIONWhat we want to be
STRATEGYOur game plan
STRATEGIC OUTCOMES
SatisfiedSHAREHOLDERS
Delighted CUSTOMERS
Efficient and EffectivePROCESSES
Motivated & PreparedWORKFORCE
PERSONAL OBJECTIVESWhat I need to do
BALANCED SCORECARDTranslate, Focus and Align
TRANSFORMATION OBJECTIVESWhat we must improve
Master Sun ConsultingMaster Sun Consulting
Balanced Scorecard - Tool for Value CreationBalanced Scorecard - Tool for Value Creation
Business Audit: Agenda for Scorecard Led Business Audit: Agenda for Scorecard Led Transformation Transformation
Strategy Maps to Individual ScorecardStrategy Maps to Individual Scorecard
Caselet Service Industry : ICICI BankCaselet Service Industry : ICICI Bank
Caselet Manufacturing : Texmaco JakartaCaselet Manufacturing : Texmaco Jakarta
Strategy Implementation ProcessStrategy Implementation Process
Sustained Strategy
Strategic Direction
Strategic Guidelines Strategy
Stage
Output
Institutionalization of the process
Identification & definition of areas of improvement
Development of solution and
testing
Implementation of solution across all
units
Activity
BusinessHealth Check
Design Process
Rollout Institutionalization
Business Audit AreasBusiness Audit Areas Business Health Check Business Health Check
Depending on the critical needs of a business , at a point Depending on the critical needs of a business , at a point of time, the Business Health Check will focus on some of time, the Business Health Check will focus on some or all of the following areasor all of the following areas
Business Performance AnalysisBusiness Performance Analysis Strategy Planning AnalysisStrategy Planning Analysis Organization Culture AnalysisOrganization Culture Analysis Process & Systems AnalysisProcess & Systems Analysis Operations AnalysisOperations Analysis Marketing AnalysisMarketing Analysis Sales & Distribution AnalysisSales & Distribution Analysis Customer satisfaction analysisCustomer satisfaction analysis
Audit sets an agenda for transformation & also Audit sets an agenda for transformation & also outlines the strategic thrusts for scorecard outlines the strategic thrusts for scorecard implementationimplementation
Master Sun ConsultingMaster Sun Consulting
Balanced Scorecard - Tool for Value CreationBalanced Scorecard - Tool for Value Creation
Business Audit: Agenda for Scorecard Led Business Audit: Agenda for Scorecard Led Transformation Transformation
Strategy Maps to Individual ScorecardStrategy Maps to Individual Scorecard
Caselet Service Industry : ICICI BankCaselet Service Industry : ICICI Bank
Caselet Manufacturing : Texmaco JakartaCaselet Manufacturing : Texmaco Jakarta
Activities needed to create the required customer value propositionand differentiation and the desired financial outcomes
Organization infrastructure, skills, capabilities, knowledge of employees, working climate..The ability to execute internal business processes in newdifferentiated ways
Who are the target customers that will generate the revenue growth?
What are the objectives and how do we measure success with them?
What are the financial objectives for growth and productivity?
What are the major sources of growth?
Translate : Strategy into 4 Translate : Strategy into 4 ComponentsComponents
Vision and Strategy
Financial Perspective
Customer Perspective
Internal Perspective
Learning and growth
Perspective
•Patent Score for Process Improvements•SWIFT Training to Branches, Terminator Workshops
•Performance within TATs•Quality•Productivity•% Complaints to Transactions•Branch Contacts with Customers, Delivery Success Rate %
Research, Education & Teaching
Translate : Terminator Zero UnhappinessTranslate : Terminator Zero Unhappiness
Internal Processes
MissionTo ensure that the all causes of Unhappiness for Customer are Terminated in order for the bank to vie for Service Leadership
Maintainability (MTTR) = (m/c downtime hrs) No. of Breakdowns
PM Index = No. of m/c for which PM is carried out No. of m/c due for PM
Crew Utilization = Total earned hrs x 100 Actual available hrs
MMTR = Mean Time To RepairMTBF = Mean Time Between Failures VersusMTBM = Mean Time Between Maintenance?
Backlog Hours = Sigma [Job in queue x standard time]
Cost = Actual Job Cost + Lost Opportunity
Routine Index (MI)
Turnaround Index (MI)
Maintenance Capex
Maintenance Costs
Inspection Costs
Routine Costs
Plant transformations
Extraordinary Costs
Operating Costs
Contractor Costs
Turnaround Cost(Outside of current scope)
Equipment Constraint Hours
Risk Constraint Hours
Skills Constraint Hours
Profit Constraint Hours
Non Constraint Hours
RCA Design %
RCA Installation/ Repair %
RCA Utilization %
RCA Preventative %
RCA Planned %
Maintenance Schedule Adherence
Planning Accuracy = Actual
Hours/Estimated Hours
Align :KPI Roll Down – Oil RefineryAlign :KPI Roll Down – Oil Refinery
Align : Lowest Organism in the Align : Lowest Organism in the Food ChainFood Chain
Mobil – Truck DriversMobil – Truck Drivers Truck drivers were initially skeptical about how they Truck drivers were initially skeptical about how they
could affect any of the corporate strategic themes. They could affect any of the corporate strategic themes. They knew that their job was to deliver to customersknew that their job was to deliver to customers
By driving safely and avoiding accidents truck drivers By driving safely and avoiding accidents truck drivers could improve performance on all internal measures that could improve performance on all internal measures that were identified… lower costs, reliable, on time, were identified… lower costs, reliable, on time, environmentally friendlyenvironmentally friendly
ICICI-Fire in the BranchICICI-Fire in the Branch Every single mistake by a branch added up to a lot of Every single mistake by a branch added up to a lot of
failures countrywidefailures countrywide Single complaint in a branch will bring the branch to a Single complaint in a branch will bring the branch to a
standstillstandstill Would track to one activity not being done by a single Would track to one activity not being done by a single
personperson Refer to Drawer syndromeRefer to Drawer syndrome
Align : Balanced Scorecard with Align : Balanced Scorecard with Organizational Design Organizational Design
Job based on the Scorecard Matrices rather than on position descriptions, reporting relationships, and title transformations?
To what extent does your organization encourage individuals, regardless of job description, to search for innovation & growth ?
Brief on how your job impacts the KPIs of other department? Extent you feel you receive a sufficient amount of feedback
from internal and external sources to help you improve what you do?
Extent balanced scorecard tied to the transformation initiative? Extent performance appraisal system integrated with balanced
scorecard KPIs? Extent does your current compensation/promotion system
support/promote balanced scorecard KPIs? Extent do you understand what you must do to satisfy the
customer’s needs?
All complaints to be resolved with root fix Complaints
Get it right first time. Call up a customer if
error is noticed Transactions
Ensure First ContactResolution Contacts
Close SR Within TAT Good Closure Quality Service Requests
Root Cause Analysis & Review
Reduce Service Failure Flow
Delivery Failure
Align :Mission Zero UnhappinessAlign :Mission Zero Unhappiness
• People understand that they are “being told” to do something new. • God knows why because they don’t see the use of it !!• This is normally viewed as extra non-value added responsibility. • If you stop checking, they will stop trying.
• People start realising why the data recorded in the system might be of use to them and the business in the future. Process transformation begin to inspire confidence
• There is some light at the end of the tunnel.• You still need to keep them on close track however.
• Recording this new or extra data and working in a new way has now become a fact of life. Process compliance is high
• They now start using (read : analyzing) the scorecards. • Meetings are held to review the data. The wheel starts turning!
• People understand that they are “being told” to do something new. • God knows why because they don’t see the use of it !!• This is normally viewed as extra non-value added responsibility. • If you stop checking, they will stop trying.
• People start realising why the data recorded in the system might be of use to them and the business in the future. Process transformation begin to inspire confidence
• There is some light at the end of the tunnel.• You still need to keep them on close track however.
• Recording this new or extra data and working in a new way has now become a fact of life. Process compliance is high
• They now start using (read : analyzing) the scorecards. • Meetings are held to review the data. The wheel starts turning!
• People don’t think about the new system& processes anymore. It is THEIR system now.
• They fully optimize the usage of data gathered at all levels. • They use the Scorecards to drive improvements in business performance. • They improve details of the systems as per the requirements.
Success
Hope
ProblemDefinition
Solution Development
Solution Implementatio
n
Culture Change
Pain
The Mind’s Path To Success
Change ManagementChange Management
Change : Keep Scorecards FocusedChange : Keep Scorecards Focused At least one objective/measure per perspectiveAt least one objective/measure per perspective
No more than 15 measuresNo more than 15 measures
Personal scorecard must support supervisor’s Personal scorecard must support supervisor’s scorecardscorecard
Every supervisor must have an objective and Every supervisor must have an objective and measure for coaching and employee developmentmeasure for coaching and employee development
Scorecard must include an objective and measure Scorecard must include an objective and measure that that supports another part of the businesssupports another part of the business
•
•Key Issue: RTO returns would sit at the branches, waiting for customer to collect them •Solution: Outbound Calling
•Every deliverable cleared resulted in a happy customer, lesser rework & cost savings•Average Contact Ratio:65%
Data :Nov04-Jun 05
Change : RCA Deliverables Not Change : RCA Deliverables Not ReceivedReceived
Change Management : Link to IncentivesChange Management : Link to Incentives
ICICIICICI Zero Unhappiness BranchesZero Unhappiness Branches
VNCVNC Incremental Performance over Base Performance is Incremental Performance over Base Performance is
rewardedrewarded Sales Reps often make incentive over and above salarySales Reps often make incentive over and above salary Performance observed over a quarterly period to avoid Performance observed over a quarterly period to avoid
“ “ If you can’t If you can’t measure it, you measure it, you
can’t manage it.”can’t manage it.”
The secret to successful change management is to be able to The secret to successful change management is to be able to assess and measure your progress through the ‘minds path’ assess and measure your progress through the ‘minds path’
Change Management Assessment System Change Management Assessment System
The four mindsets must be measured by Auditing.The four mindsets must be measured by Auditing.Auditing is Auditing is a quantitative measure of a qualitativea quantitative measure of a qualitative
• Audit questionnaires are developed to assess the mindset levels using a structured approach:
1. Closed ended questions for compliance.2. Open ended questions for understanding.3. Demonstrative questions for usage.
• The audit questionnaire answers get converted into a scoring scheme…
• 0 for wrong or not done.• 1 for partially right or partly done.• 3 for correct or demonstrated.
• The percentages of each system performance category are plotted
• The target is 100%.
Change :Assessment Management Change :Assessment Management System (CAMS)System (CAMS)
Installation Status
0%10%20%30%40%50%60%70%80%90%
100%
-5 -4 -3 -2 -1 0 CurrentPeriod
Achi
evem
ent
InstalledPartially InstalledNot Installed System Utilization Status
Change : Training & Change : Training & CommunicationCommunication
Change : Training in Problem Solving –Change : Training in Problem Solving –Decision MakingDecision Making
Objective: Objective: The Program intends to provide an insight to the participants inThe Program intends to provide an insight to the participants in
to the techniques for confronting the issues and arrive at alternatives toto the techniques for confronting the issues and arrive at alternatives toresolve them effectively using various tools and techniques. The program isresolve them effectively using various tools and techniques. The program isstructured to provide an exposure to the systematic approach to logicalstructured to provide an exposure to the systematic approach to logicaldecision making for attaining most optimal use of resources and enhancedecision making for attaining most optimal use of resources and enhanceeffectiveness.effectiveness.
Proposed Program Contents: Proposed Program Contents: Problem SolvingProblem Solving A conscious, systematic approach for analyzing situations and articulatingA conscious, systematic approach for analyzing situations and articulating
problems, underlying assumptions and expected outcomesproblems, underlying assumptions and expected outcomes Root Cause AnalysisRoot Cause Analysis: A structured investigation that aims to identify the true : A structured investigation that aims to identify the true
cause of a problem and the actions necessary to eliminate it. Covers tools & cause of a problem and the actions necessary to eliminate it. Covers tools & techniques for problem understanding, cause generation, data collection, cause-techniques for problem understanding, cause generation, data collection, cause-and-effect analysis and-effect analysis
Six Hat Thinking: Six Hat Thinking: Harness lateral thinking capabilities to unearth the resources Harness lateral thinking capabilities to unearth the resources available and make optimal use of them to gain expected outcomes. Avoiding ten available and make optimal use of them to gain expected outcomes. Avoiding ten mental creative locksmental creative locks
Force Field AnalysisForce Field Analysis: Identifying potential risks and opportunities inherent in the : Identifying potential risks and opportunities inherent in the situationssituations
80-20 Analysis or Pareto Principle:80-20 Analysis or Pareto Principle: Prioritizing & focusing problem solving Prioritizing & focusing problem solving exercise on key issuesexercise on key issues
Decision MakingDecision Making Even SwapsEven Swaps : A rational method for analyzing decision options & making swaps : A rational method for analyzing decision options & making swaps Hidden Traps of Decision MakingHidden Traps of Decision Making & how to avoid them & how to avoid them Group Decision Making:Group Decision Making: Using group decision making techniques like consensus Using group decision making techniques like consensus
& NGT. Avoiding usual traps of decision making like Groupthink& NGT. Avoiding usual traps of decision making like Groupthink Decision Implementation: Decision Implementation: Decision implementation plan, monitoring, feedback & Decision implementation plan, monitoring, feedback &
Scorecard’s Role in TransformationScorecard’s Role in Transformation Scorecard is an indispensable tool to manage & Scorecard is an indispensable tool to manage &
monitor a transformation/business performance monitor a transformation/business performance improvement programmeimprovement programme
Scorecard Implementation needs to be supported by Scorecard Implementation needs to be supported by functional/departmental initiatives functional/departmental initiatives
Scorecard supported by a Transformation Initiative Scorecard supported by a Transformation Initiative drives Business Resultsdrives Business Results
Goal Objective Measurement Target Initiative
Achieve operational efficiencies with best practices in
Reduce Operational Service Costs by 50% over the next 5 years
Cost per Outlet Office, Cost per Region, Cost per FTE
5% - Year 110% - Year 215% - Year 3
Activity Based Costing / Management
Reduce identified re-activities within primary processes by 80% over the next 3 years
Waste Volume Charts, Rework Tracking, Cycle Time End to End in S-LX (5 of 7 Regions)
Waste stream reductions of 5% each year, Reworks cut in half for next 3 years, cycle time cut by 75%
When you first launch your Initiative, you probably want to use an Output Measurement. Once the Initiative is up and running, integrate your measurement to an Outcome to see if the Initiative is really having strategic impact.
Mobilize : Top Management CommitmentMobilize : Top Management Commitment1.Creating the Climate for Change1.Creating the Climate for Change
Unfreeze the organizationUnfreeze the organizationShow the need for changeShow the need for change
2.2. Creating the Leadership TeamCreating the Leadership TeamBreaking down functional biasBreaking down functional bias
3.3. Creating the Vision and StrategyCreating the Vision and StrategyBSC as a “visioning process”BSC as a “visioning process”BSC to clarify the strategyBSC to clarify the strategy
4.4. Creating Team AccountabilityCreating Team AccountabilityAccountability for cross-functional strategic themes at Executive Team levelAccountability for cross-functional strategic themes at Executive Team level
A successful Balanced Scorecard program starts with a A successful Balanced Scorecard program starts with a recognition that it is not a “metrics” project, it’s a recognition that it is not a “metrics” project, it’s a “change” process.“change” process.
Strategic Learning Loop
Initiatives & Programs
test the hypotheses
Output(Results
)
reporting
Management Control Loopfunding
Input(Resource
s)
update the strategy
PERFORMANCE
85% of management teams spend less than one hour
per month on strategy issues
92% of organizations do not report on lead
indicators
60% of organizations don’t link strategy & budgets
78% of organizations lock budgets to an annual cycle20% of organizations take
Mobilize : Red Buttons to Avoid Mobilize : Red Buttons to Avoid Middle Management Team: Lack of Senior Middle Management Team: Lack of Senior
Management CommitmentManagement Commitment Done by One or Two IndividualsDone by One or Two Individuals Held at the Top: For Senior Management OnlyHeld at the Top: For Senior Management Only Too Long a Development Process: “Best Becomes the Too Long a Development Process: “Best Becomes the
Enemy of the Good”Enemy of the Good” Treating the Balanced Scorecard as a Systems Treating the Balanced Scorecard as a Systems
ProjectProject Done Only for CompensationDone Only for Compensation Not Treated as a Change Management ProjectNot Treated as a Change Management Project
Master Sun ConsultingMaster Sun Consulting
Balanced Scorecard - Tool for Value CreationBalanced Scorecard - Tool for Value Creation
Business Audit: Agenda for Scorecard Led Business Audit: Agenda for Scorecard Led Transformation Transformation
Strategy Maps to Individual ScorecardStrategy Maps to Individual Scorecard
Caselet Service Industry : ICICI BankCaselet Service Industry : ICICI Bank
Caselet Manufacturing : Texmaco JakartaCaselet Manufacturing : Texmaco Jakarta
ContextContext Focus on Top line. ICICI Bank perceived to be very Focus on Top line. ICICI Bank perceived to be very
aggressive on sales , very poor on service. aggressive on sales , very poor on service. For bottom-line to improves it was important for the For bottom-line to improves it was important for the
bank to be a service leader.bank to be a service leader. Improved ServiceImproved Service
Leads to improved productivity & profit Leads to improved productivity & profit Generates a positive word of mouth. Attracts new Generates a positive word of mouth. Attracts new
customers customers Provides a competitive advantage. Provides a competitive advantage.
More difficult and slower for a competitor to respond to More difficult and slower for a competitor to respond to service improvement than to price change. service improvement than to price change.
Help us retain customers. Help us retain customers. Cheaper to retain customers than to acquire new onesCheaper to retain customers than to acquire new ones
•Patent Score for Process Improvements•SWIFT Training to Branches, Terminator Workshops
•Performance within TATs•Quality•Productivity•% Complaints to Transactions•Branch Contacts with Customers, Delivery Success Rate %
Research, Education & Teaching
Terminator : Zero UnhappinessTerminator : Zero Unhappiness
Internal Processes
MissionTo ensure that the all causes of Unhappiness for Customer are fullyTerminated in order for the bank to vie for Service Leadership
reviewed in fortnightly reviewsreviewed in fortnightly reviews All variances are linked to RCAAll variances are linked to RCA Comparison of Monthly Comparison of Monthly
Performance Vs. BudgetPerformance Vs. Budget Focus on Top Service FailuresFocus on Top Service Failures Key Indicators Focused On : Key Indicators Focused On :
Number of Service Failures, Number of Service Failures, Quality, Service Request Quality, Service Request Closed within TATClosed within TAT
Scorecard Related RCA : Scorecard Related RCA : Deliverables Not ReceivedDeliverables Not Received
Apart from wrong creation, dispatch/delivery related issues needed focus
•Key Issue: RTO returns would sit at the branches, waiting for customer to collect them •Solution: Outbound Calling
•Every deliverable cleared resulted in a happy customer, lesser rework & cost savings•Average Contact Ratio:65%
Data :Nov04-Jun 05
RCA: Deliverables Not ReceivedRCA: Deliverables Not Received
RCA : Deliverables Not ReceivedRCA : Deliverables Not Received Issue :E-search UpdateIssue :E-search Update
E-search information for certain deliverables not updated/ E-search information for certain deliverables not updated/ available resulting in inadequate /incomplete information to available resulting in inadequate /incomplete information to customers & Service Request creation errorscustomers & Service Request creation errors
Initiative :E-Search Update (CTD Initiative)Initiative :E-Search Update (CTD Initiative) Identified mandatory uploads for First Contact Resolution Identified mandatory uploads for First Contact Resolution
related to RPC/ CPC processes related to RPC/ CPC processes Designed and finalized the file formats for all mandatory Designed and finalized the file formats for all mandatory
uploads - easy reading for front enduploads - easy reading for front end National Co-ordinator appointed to tracking e-search open National Co-ordinator appointed to tracking e-search open
cases and timely uploadscases and timely uploads I-KIT AOF Rejections,Modification Request I-KIT AOF Rejections,Modification Request
Rejections,Nomination Rejection Letters Nomination Rejections,Nomination Rejection Letters Nomination Registration Request Rejections,Non I-Kit SB/FD-RD AOF Registration Request Rejections,Non I-Kit SB/FD-RD AOF Rejections,Transfer of Account- Rejections,Transfer Cheque Rejections,Transfer of Account- Rejections,Transfer Cheque Returns, ATM Retained Cards,TDS - Form 15G Rejections etc. Returns, ATM Retained Cards,TDS - Form 15G Rejections etc.
Indonesian Textile Giant CaseletIndonesian Textile Giant Caselet The company is one of the largest Textile company in The company is one of the largest Textile company in
IndonesiaIndonesia Company had been hit heavily by currency crashCompany had been hit heavily by currency crash In order to improve bottom-lines a plan to reduce the In order to improve bottom-lines a plan to reduce the
various kind of value losses in production, quality, various kind of value losses in production, quality, packing, utility etc.packing, utility etc.
Ambitious target of USD 4 Million in Value Loss Ambitious target of USD 4 Million in Value Loss Reduction was setReduction was set
Initiatives like TQM, Setting up Management Control Initiatives like TQM, Setting up Management Control Systems Organizational re-structuring were Systems Organizational re-structuring were pioneeredpioneered
Balanced Scorecard was used as a strategy Balanced Scorecard was used as a strategy implementation tool to support Strategy implementation tool to support Strategy ImplementationImplementation
•Patent Score for Process Improvements•SWIFT Training to Branches, Terminator Workshops
•Performance within TATs•Quality•Productivity•% Complaints to Transactions•Branch Contacts with Customers, Delivery Success Rate %
Research, Education & Teaching
Project Zero Value LossProject Zero Value Loss
Internal Processes
MissionTo ensure that the all causes of Unhappiness for Customer are fullyTerminated in order for the bank to vie for Service Leadership
Organization: Mobilize employees to act in fundamentally different ways, guided by ‘value loss’ strategy with each employee having an individual scorecard & action plan
Chief of Sales & Marketing- Weekly Chief of Sales & Marketing- Weekly ScorecardScorecard
ResultsResults1.1. GI Contributions increased by Rs. 3 CroresGI Contributions increased by Rs. 3 Crores
Domestic Net Realization (NR) per ton for GI increased by Domestic Net Realization (NR) per ton for GI increased by 12% (from Rs. 19,233 in Sept. 2001 to Rs. 21,513 in Sept. 12% (from Rs. 19,233 in Sept. 2001 to Rs. 21,513 in Sept. 2002)2002)
2.2. Outstanding collection savings of Rs 93 Lacs Outstanding collection savings of Rs 93 Lacs @ 12% interest PA @ 12% interest PA
Outstanding collection from Rs. 483 Lacs Pre-Renoir to Rs. Outstanding collection from Rs. 483 Lacs Pre-Renoir to Rs. 1337 Lacs post-Renoir period 1337 Lacs post-Renoir period
3.3. Incremental contribution of Rs.77 Lacs by Incremental contribution of Rs.77 Lacs by 29% increase in sales in MTB29% increase in sales in MTB
1125 TPM for the H1 of 2002-03 compared to 1125 TPM for the H1 of 2002-03 compared to average of 874 TPM for the year 2001-02. average of 874 TPM for the year 2001-02.
4.4. Outsourcing Savings targeted at Rs. 6 CroreOutsourcing Savings targeted at Rs. 6 Crore
Finally Finally
In God We Trust , Everybody Else Must Bring DataIn God We Trust , Everybody Else Must Bring Data
““You see, all the right things are written in books You see, all the right things are written in books and research papers.and research papers.
The trick is to ensure that there is no gap The trick is to ensure that there is no gap between what is written in the books and your between what is written in the books and your vision; from what is happening on the shop-floor vision; from what is happening on the shop-floor and what is going on in the marketplace.and what is going on in the marketplace.
That is execution. That is what makes the That is execution. That is what makes the difference”difference”