Lassib 2012 industry advisory report on operational excellence preview

2012 INDUSTRY ADVISORY REPORT ON
OPERATIONAL EXCELLENCE
©2012 LASSIB Society, All Rights Reserved

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

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.

T HIS REPORT HAS BEEN MADE POSSIBLE WITH THE SUPPORT OF LASSIB S OCIETY 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
th
Round Table Conference held in Mumbai on 14 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) (Mr. Radhakrishnan Balagopal)
Panel Chair – Operational Excellence Panel, Chief Editor – Operational Excellence Panel,
President, Quality and KM Lead Consultant Co-Founder – LASSIB Society
Reliance Capital


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


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

Panel Chief Editor

Mr. Radhakrishnan Balagopal, Lead Consultant,
Capgemini

Panel in Deep Discussion Panel on Stage


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.


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 Mr. Rana Pratap Singh Executive Vice President LASSIB Society
Facilitator

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 Benefits to you Support to LASSIB Society
your initiatives
Become an  Access complete knowledge base including Funds collected through
Individual or training materials, best practices, case studies, membership fees are used to
Organization videos and webinars from LASSIB Society maintain and grow LASSIB
Member of LASSIB.  Network, learn and contribute to the fastest knowledge base.
growing community of specialist, senior leaders
Visit from the industry
https://lassib.org/ind
 Get latest updates, insights and research from
ex.php/membership
the industry delivered to your Inbox
to know more about
LASSIB membership
options.
Leverage Training  Get trained from the leading experts from the Training and certification fees
and Certification in industry who bring together years of experience charged by LASSIB Society are
themes of and best in class training skills, tools and the lowest in the Industry in
Organization technologies order to ensure these key
Excellence.  Acquire not only knowledge but skills to components are available
implement the knowledge in real life scenarios within reach to masses. The
 Attain internationally respected certifications fees charged helps cover the
thereby adding value to your organization and cost incurred by LASSIB Society
yourself for hiring trainers and issuing
 Join the growing panel of Accredited Training certificates.
Providers (ATP) and Accredited Test Centers
(ATC) of LASSIB Society to deliver value within
your organization.
Consult with LASSIB Solve organization problems, create strategy, deliver Consulting fees derived by
experts to deliver customer value through best practices and proven LASSIB Society aids LASSIB to
business and tools & techniques fund research, host events and
customer value provide free consulting
services to organizations which
cannot afford to pay yet.
Participate in LASSIB Network, brainstorm, and learn from industry Sponsorship costs and
Events leaders, face to face, over exciting discussions delegate fees assist LASSIB in
conducting these events and
spreading the awareness
within the community.
Participate and  Understand the trends in the industry By participating in building
leverage Industry  Identify common challenges and best practices these reports, you provide the
Research  Hear from experts on future forecasts 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 contact@lassib.org to get connected to a LASSIB consultant or
 Call +91-9246185187 (India) to speak to a LASSIB Evangelist directly.


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:
#5-62/9/22-B, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India. PIN: 500007
Office: +91-40-40045614 | India Fax: +91-40-40045615 | Toll Free Number: 1-800-425-1388
Email: contact@lassib.org | Website: https://www.lassib.org/

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