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C h a n G e Management Using Baldrige Business Excellence Model

C h a n G e Management Using Baldrige Business Excellence Model With Project Management Approach. G.Jagannathan, Executive Vice President, Tata Consultancy Services Limited. Nature of IT business!.

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C h a n G e Management Using Baldrige Business Excellence Model

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  1. ChanGe Management Using Baldrige Business Excellence Model With Project Management Approach G.Jagannathan, Executive Vice President, Tata Consultancy Services Limited

  2. Nature of IT business! Every morning in Africa a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows that it must out run the slowest gazelle or it will starve to death. It doesn’t matter if you are a lion or a gazelle. When the sun comes up you better be running!

  3. Need to Accelerate the Rate of Change When the Rate of Change Outside Exceeds the Rate of Change Inside, the End is in Sight - Jack Welch, Ex-CEO, GEC We Need Radical Changes Breakthrough improvements

  4. We set a shared Vision for ourselves as Global Top 10 by 2010 This called for a major change in the entire organization. This meant Driving Excellence in all that we do at all levels Our Vision

  5. Change? Who should change? Boss, Subordinate,Family, Friends or I? Why should I change? Who is the real beneficiary? Organization, Department, Family or I? What should I change? Attitude, Behaviour or Perceptions? When should I change? Now or Later? How should I change? ?????????????????

  6. The Change Model at the Organizational level After a thorough scrutiny and discussions, the leadership team concluded that we would use the Malcolm Baldrige Business Excellence model for driving change in the organization as it was the most comprehensive Business Excellence Model.

  7. The 3 Phase MBNQA model for Organizational Excellence Core Values Business Excellence Approach Deployment Results Categories

  8. Organizational Excellence Strategic Leadership Execution Excellence Organizational Learning Lead the organization Manage the organization Improve the organization

  9. Core Values…the foundation of Performance Excellence Core Values Industry Leadership Criteria of MBNQA

  10. Design Principles Organizational Learning Execution Excellence Strategic Leadership Systems Perspective Agility Managing For Innovation Focus on Future Visionary Leadership Customer Driven Excellence Focus on Results & Creating Value Org. & Personal Learning Social Resp. Valuing Employees & Partners Management By Fact Lead the organization Manage the organization Improve the organization Business Excellence Face 1 – Core Values

  11. Business Excellence Face 2 - ADR Values Processes Approach Processes Practices Deployment Evaluate & Improve Outcomes Results Practices

  12. Business Excellence Face 2 - Another Representation Systematic Approach Full Deployment Business Results Evaluation & Improvement

  13. Information & Analysis Driver Triad Work Core H R Focus 1 Leadership 5 Strategic Planning Business Results 2 7 Process Management 6 3 Customer & Market Focus 4 Business Excellence Face 3 - Categories

  14. Baldrige Scoring guidelines Leadership - 120 Strategy - 85 Customer Focus - 85 Measurement Analysis & KM - 90 HR Focus - 85 Process Management - 85 Customer Focused -70 Product & Service -100 Financial & Market -70 HR -70 Org. Effectiveness -70 Governance & Social Responsibility-70 Approach + Deployment Business Results 550 450

  15. The Approach to Change Management As a first step to change management it was decided to assess the status of the Organization on the Baldrige Scale. A quick self assessment using the Tata Quality Management Services showed that we were at 400-500 points range out of a maximum possible 1000 points. We also gathered that a Baldrige Award winners were around 650-750 score range. It was decided to follow the Project Management Approach to achieve the desired score range. Milestones were set after discussions with World Class Consultants.

  16. The Journey To Business Excellence 876 – 1000: World Class Leader 751 – 875: Benchmark Leader 651 – 750: Industry Leader 251 – 350: Early Results 0 – 250: Early Development Global Image Excellent Good 551 – 650: Emerging Industry Leader 451 – 550: Good Performance Average 351 – 450: Early Improvements Poor

  17. Improvements need to happen at all levels… Improvements@ company level… …Requires improvements @ individual levels…

  18. Formation of Business Excellence Team (BET) The leadership team decided to form an exclusive team for driving Business Excellence and appointed an Executive Vice President to head the BET. The team debated and concluded that they would follow the Project Management Methodology to drive Excellence in the organization using the overall MBNQA Framework

  19. Project Management Responsibility Integration Management Scope Management Time Management Cost Management Quality Management Communication Management HR Management Risk Management The BET responsibilities included :

  20. Integration Management BET was entrusted with the responsibility for ensuring total Integration of all processes related to Business Excellence The BET members were responsible for specific centres / Geographies of the Organization for ensuring full deployment of all relevant approaches and for monitoring results using the existing management structure. Business Excellence Councils were formed at the Corporate and at various locations to ensure Integration Integration was achieved using the Balanced Score card approach for Business results

  21. Scope Management The scope of Business Excellence was defined From To Baldrige Score 400-500 Baldrige Score 600-700 3 years 2000-01 2003-04

  22. Cost Management Budgets were prepared for every year to include the cost of effort of every associate who invested their time in Business Excellence. Costs associated with BET, Travel, Training, Assessment, Communication, Books & Journals, Benchmarking visits, External consultants engaged, time of Top Management and other associates engaged with Business Excellence initiatives, Conferences attended etc were included in the annual budget

  23. Quality Management The BET focused on ensuring that the quality of approach and its deployment at all levels of all initiatives were as per the iQMS of the company. Since TCS is a CMM and PCMM level 5 organization globally this was not a very difficult task. Locating BE Managers at all critical centres and Geographies ensured that this was fully achieved. Systematic reviews of all processes at the Business Excellence Councils further strengthened the Quality Management aspect.

  24. Communication Management This was achieved through several means using all of the Organization’s channels of communication Corporate Communication was fully involved in this process Special column titled “ExceLLens-Your wide angle view of Business Excellence” was started as a part of Monthly magazine @TCS enumerating several case studies. BE Awareness Programs were initiated through out TCS with the help of Learning and Development Group. Special BE Home page was started in the Employee Portal called “Ultimatix” Effectiveness of communication was monitored through the Associate survey called PULSE.

  25. HR Management The BET was staffed with senior persons with considerable experience in TCS. Persons with experience in driving Business Excellence in other organizations were also recruited and staffed in BET. All the BET members had to undergo special training and had to qualify as MBNQA Assessors. In addition, Business Excellence Champions were identified across TCS in all centers and geographies and were provided with Training in a systematic manner.

  26. HR Management - continued External Consultants were engaged for Training and Consultancy who had considerable experience as Senior Baldrige Examiners. BET members were engaged in assessing other companies of the Tata Group using the MBNQA Guidelines which gave them considerable exposure to the assessment process as well as to Best Practices of other companies. The senior management were fully involved as a part of the Cross Functional Teams responsible for each category of the Model. This ensured their participation and gave the process the much needed visible support.

  27. Risk Management Using the six hats technique of Edward de Bono the two major risks were identified - the wrong adoption of a well designed approach and weak deployment across the organization. We introduced a self assessment process called “BEST” at all centers and geographies using the Internal expertise of TCS and systematically planned and executed the process to mitigate the risk.

  28. Results Achieved so far Our journey of excellence… Not to scale 800 Baldrige Benchmark 650 700 609 587 Good 515 600 457 500 Assessment Scores Target 400 JRD QV Award 300 200 100 0 2003-04 2004-05 2000-01 2001-02 2002-03 Years * JRDQV Award: Tata Group Award for Business Excellence

  29. Conclusions The results achieved so far show that we are on the right track PM Concepts have helped us to achieve the desired results in a systematic way. PM steps helps in ensuring that the approaches are deployed effectively across the Organization. Monitoring is made simpler and mid course corrections where ever necessary is made easier through the systematic use of PM Processes

  30. Thank you

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