peg case tcs operating tactics reduce costs retain customers
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© 2009 APQC. ALL RIGHTS RESERVED
Operating Tactics in Tough Times:
Reduce Costs and Retain Customers
Case Study
Tata Consultancy Services Site Visit Date: July 15, 2009
SITE VISITS HOSTS:
Govindarajan Jagannathan
Executive Vice President,
Global Head of Business Excellence and Leadership and Governance Process Design
Process Excellence Group, Tata Consultancy Services
A. Srinivasan
Vice President and Global Head of Knowledge Management Systems and Process Digitization,
Process Excellence Group, Tata Consultancy Services
Vipin Arora
Principal Consultant,
Global Head of Program and Change Management
Process Excellence Group, Tata Consultancy Services
Lakshmi V. Murali
Principal Consultant and Co‐Lead for Leadership and Governance Process Design
Process Excellence Group, Tata Consultancy Services
D. Rangarao
Senior Consultant, Leadership and Governance Process Design
Process Excellence Group, Tata Consultancy Services
Pathikrit Bandyopadhyay
Senior Consultant, Leadership and Governance Process Design
Process Excellence Group, Tata Consultancy Services
Smriti Mulye
Consultant, Leadership and Governance Process Design
Process Excellence Group, Tata Consultancy Services
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Operating Tactics in Tough Times: 2 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
Tata Consultancy Services
SNAPSHOT
Founded in 1868, the Tata Group is a multinational conglomerate based in Mumbai, India. The largest
private corporate group in India and one of the most respected institutions in the world. Tata has
interests in Materials, Engineering, Information Technology and Communication, Energy, Services,
Consumer Products, and Chemicals. Some of its large companies include Tata Steel, Tata Motors, Tata
Consultancy Services, Tata Power, Tata Communications, Tata Chemicals, Tata Tea, Voltas, and Titan
Industries. With 114 companies and subsidiaries in seven business sectors, Tata Group operates in more
than 85 countries across six continents and provides services to more than 80 nations. In 2008 the Tata
Group reported $63 billion (USD) in revenue.
Established in 1968, Tata Consultancy Services (TCS) is the first and largest software company in India.
With revenues of $6.01 billion in FY 2009, TCS has a global presence in 140 offices across 42 countries
and approximately 126,000 employees. The organization is also recognized as one of the top Indian IT
companies and has more than 900 clients in 55 countries. Forty‐nine of the top 100 organizations on the
Fortune 500 Companies list are TCS clients. In addition, TCS has a highly educated and diverse
workforce. More than 70 percent of its employees are engineers or PhD holders, and the organization
incorporates nationalities across the globe.
The organization operates in numerous industries including banking and financial services; insurance;
energy
and
utilities;
telecommunications;
media
and
entertainment;
government;
life
sciences
and
health care; manufacturing; retail and consumer goods; travel, transportation, and hospitality; and high
technology. The TCS portfolio of offerings includes IT services, consulting, business process outsourcing,
IT infrastructure solutions, engineering and industrial services, and product‐based solutions. TCS is also
the first organization in the world to be assessed at Level 5 for integrated, enterprise‐wide CMMI
(capability maturity model integration) and the PCMM (people capability maturity model).
TCS’s Vision is to be a global top 10 organization by 2010. The TCS mission is: “To help customers
achieve business objectives by providing innovative, best‐in‐class consulting, IT solutions, and services.
To make it a joy for all stakeholders to work with us.” As noted by Executive Vice President and Global
Head
of
Business
Excellence
and
Leadership
and
Governance
Process
Design
Govindarajan
Jagannathan,
“It’s not just work, but work with pleasure.” The vision and mission is fulfilled by a strong set of core
values, which include leading change, integrity, respect for the individual, excellence, learning, and
sharing.
TCS continues to receive international recognition for its process excellence and is the recipient of
numerous awards including the JRD Quality Value Award from the Tata Group and India’s CII‐EXIM
Business Excellence Award (similar to the European Foundation for Quality Management Excellence
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Operating Tactics in Tough Times: 3 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
Award). In 2009 TCS received the Most Admired Knowledge Enterprise (MAKE) award for the fourth
time since 2005 and ranked No.1 by the Dataquest Magazine’s DQ Top 20 company rankings for 2009
for the 7th consecutive year.
BACKGROUND
Every year the environment around us changes. As changes occur in the market, we must anticipate and update our processes. Today, our focus is on how to deliver more with less.
—A. Srinivasan, Vice President and Global Head of KM Systems and Process Digitization, TCS
TCS Operating Model and Process Excellence
Process excellence is engrained in the TCS’ culture, services, customer management, and organizational
operations. Since
1994,
TCS
has
strategically
focused
on
process
improvement.
Figure
1 depicts
the
process excellence journey at TCS, which initially focused on quality control systems and quality
management.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services L imited
19
Our Process Excellence J ourney
1994
1999
2001
2002
2004
2005
2006
2007
Early 90’s: TCS-QMS
ISO 9001:1994
80’s: Quality Assurance
SW-CMM®
P-CMM®
ISO 9001:2000
iQMS+ CMMI V1.1
+ P-CMM
TCS wide ISO 9001:1994 certification
17 centers assessed at SW-CMM® Level 5
4 centers assessed at P-CMM® Level 4
TCS wide ISO 9001:2000 certification
TCS wide CMMI® and P-CMM® Level 5, JRD QV Award
TCS wide ISO 9001: 2000, BS7799, BS15000
TL9000, AS9100, IS13485, ISO 27001, ISO 20000iQMS
+ Domain models
iQMS+ BPO, Environment Practices
+CMMI V1.2
TCS wide CMMI® v1.2 Level 5
ISO 14001
iQMS+ Security, IS, BCP practices
iQMS
+ Sales, Consulting Practices
+ integrated BPM
TCS wide Triple ISO Audit
ISO 9001:2008, ISO 27001, ISO 20000
2009
Figure 1: The TCS Process Excellence Journey
The process excellence journey is continuous and dynamic at TCS. Moreover, since information
technology is an agile industry, strategy and process reviews occur quarterly and sometimes more
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Operating Tactics in Tough Times: 4 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
frequently based on need. Strategic planning horizons are set out 12 to 24 months, again mainly
because the industry is constantly changing.
TCS is led by a CEO/managing director who oversees the corporate functions such as HR, corporate
finance, corporate affairs, marketing, legal, and research and development, whereas the COO takes care
of the entire operations of the organization. Industry solutions units, new growth markets, major
markets, and strategic initiatives are the primary business segments.
Like many organizations, TCS is aligning process improvements to reflect changing business needs. In
2008 its customer base experienced economic stress and required an increase in business value, which
has affected key processes and TCS’ business proposition. Process changes address cost, productivity,
and customer relationships. For instance, in 2008 and 2009 the organization developed processes to
service different market segments and enhanced its offerings that provide customer value.
PROCESS CAPABILITY AND MATURITY
The three cornerstones of process excellence are simplification, standardization, and integration. —A. Srinivasan, Vice President and Global Head of KM Systems and Process Digitization, TCS
Process capability and maturity is also managed by the process excellence group. The group’s goal is to
ensure “(TCS clients) an experience of certainty & one global service standard by enabling the operating
units to drive agility, rigor and continuous improvement through the adoption of lean, pragmatic and
standardized processes.” TCS’ process excellence group drives continuous process implementation and
improvement across
all
operating
units.
Operating
units
are
accountable
for
deploying
processes
across
business units. The process excellence group works closely with operating units throughout process
design, deployment, and support.
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Operating Tactics in Tough Times: 5 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
The process excellence group works with each TCS operating unit to ensure that each process is
designed, deployed, and improved in a consistent manner. Figure 2 illustrates the link between the
process excellence group and TCS operating units. Teams from the group are deployed to ensure proper
support, design, and compliance of TCS processes.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services Limited
PEG
Digitization
21
Process Excellence Group and its Interface with Operating Units
Process
Improvement
Process Excellence Head
Deployment Support
Process Area 1
Process
Area 2
Process
Area 3
Process Area 4
Process Area (n)
Audi t
Compliance
DigitizationSupport
OU SupportTeam
OU SupportTeam
OU SupportTeam
OU Support
Team
PISupport
Design Team
Process Area 1
Process
Area 2
Process
Area 3
Process Area 4
Process Area (n)
Audi t &Compliance
Audit &Compliance
Team
ProcessImprovement
ProcessDigitization
Operating Unit (ISU Example)
Operating Unit Head
Client
Groups &
Other OUfunctions
Process Excellence Leader
Bid/SalesMgmt. Office
Quality Assuran ce
Manager
ProgramMgmt. Office
Knowledge
Champion
InformationSecurity
Manager
Audi t &Compliance
Manager
PI Champion
BM Champion
Figure 2: Operating Units Interface
The process excellence group implements improvements using its wheels of process excellence model
(Figure 3). Process excellence is achieved through robust process design and improvement, deployment,
compliance, and digitization1, supported by strong organizational change management. At TCS, the key
to achieving process excellence is ensuring each of these factors is robust and integrated.
15th July 2009
Copyright©2009 Tata Consultancy Services Limited
22
The Wheels of Process ExcellenceEnsuring Agile, Rigorous and Pragmatic processes
OU PE n
ProcessDesign &
Improvement
Process
Digitization
Process
Deployment
Process
Compliance
OU PE 2
The key to achieving process excellence is by ensuring
that each of the wheels are extremely robust and its cog s
are well integrated
Program & Change
Management
OU PE1
Figure 3: The Wheels of Process Excellence Model
1 At TCS, process digitization establishes controls and automation. Refer to page 6 of this case study for
additional detail on process digitization.
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Operating Tactics in Tough Times: 6 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
The process excellence group uses several levers to ensure cost and productivity in each wheel of
process excellence: shared services, enablement through competency building, knowledge reuse, and
digitization. Knowledge reuse is critical to the process. “We depend on knowledge reuse across our
126,000 employees to make sure we are not reinventing a process or tool,” said Jagannathan. Shared
services help to pool resources and eliminate process redundancies so that repetitive activities that can
be deskilled through digitization are outsourced to an internal shared services group. The goal is to
consolidate resources that can increase productivity. Process flow across the organization incorporates
feedback and input from a change advisory board, operating units, the process excellence group,
customers, and suppliers.
Each operating unit has an extended process excellence group. These groups within the operating units
have a defined set of roles and responsibilities. For example, they must notify, prepare, and conduct
operating unit training plans. Operating unit process groups must also deploy processes and provide
process data specific to the operating unit. Participating in surveys and providing suggestions to improve
processes are some of the additional tasks given to the extended process excellence groups. As the
organization becomes more vertical in organizational structure, the role of extended process excellence
groups has become more decentralized. However, through the digitization of processes, collaboration
across the operating unit process excellence groups is achieved thereby creating a virtual team
comprising of core and extended process excellence groups.
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Operating Tactics in Tough Times: 7 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
The Process Design and Improvement Model
As mentioned, process design and improvement is one of the key wheels that drive process excellence
across
TCS.
Process
design
and
improvement
adheres
to
a
model
that
provides
inputs
and
links
from
several resources. Figure 4 depicts the process design and improvement steps in the organization.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services L imited
P r o c e s s
D e s i g n a n d I m p r o v e m e n t
Yes
28
Process Design and Improvement
Improvement
Strategy
Quality
Models
Stakeholder
Requirement &
Practitioner
Feedback
Learning/
Best
Practices
Process
Performance
Analy sis
ToCAB for Plan
integration
ToProcess
Digitization for definingdigitizationrequirements
ToCAB, Audit &
Compliance,
Deployment Support
for process review andsign off
ToDeployment
Support for processdeployment
OU PEn
OUPE1ProcessDesign &
Improvement
ProcessDigitization
ProcessDeployment
ProcessCompliance
OU PE2
InputsLinkage
Process Steps
Gather Requirements
Prioritize Requirements
Analyse Impact s
Identify KPIs
Design Processes
Modify Process Design
Pilot process
Discard/Redefine processes
Baseline new processes
Prepare T raining Material
Update Knowmax
Train PDS/ACM
Success
No
Yes with Change R e d e f i n e
Figure 4: Process Design and Improvement
As shown, each process improvement incorporates input from stakeholders including customers, senior
management, and process teams. Aspects pertaining to quality models, improvement strategies, best
practices, and process performance analysis are also taken into consideration while making any process
change or improvement.
After gathering relevant inputs and requirements, each potential process is prioritized by the group.
“We don’t want to pick up all process improvements at one time,” said Vice President and Global Head
of Knowledge
Management
Systems
and
Process
Digitization
A.
Srinivasan.
Accordingly,
all
requirements
are analyzed to determine the impact on existing processes and are prioritized. Key performance
indicators are also developed to show the impact a process will have on the organization. During the
early stages of development, the process digitization group defines automation requirements and
enables the change advisory board to prepare for full‐scale integration.
The Process Design groups such as Leadership and Governance, Sales and relationships, Delivery and
others design their respective processes with inputs from the change advisory board, through audit and
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Operating Tactics in Tough Times: 8 Case Study: Tata Consultancy Services
Reduce Costs and Retain Customers © 2009 APQC. ALL RIGHTS RESERVED
compliance and through deployment support for process review and approval. Each process is modified
and piloted prior to full‐scale rollout. Once the process is approved, deployment support is provided,
and old processes are discarded or redefined as required. A baseline for new processes is developed in
conjunction with training materials. During the process design, the process design group updates
relevant knowledge repositories and tools. Accordingly, the internal knowledge platform is updated by
the respective Design groups to reflect the process changes (Figure 4 above, on page 7). Throughout the
process life cycle, the process excellence group gathers feedback from stakeholders including
customers, practitioners, partners, suppliers, and alliance partners.
Process Digitization
Process digitization is another key ingredient for process excellence. At TCS, process digitization
establishes controls and automation. Automation is critical to ensure process compliance and
deployment.
Accordingly,
the
digitization
process
is
clearly
articulated
across
the
organization.
Figure
5
shows the digitization process used at TCS. As described by Vipin Arora, global head of program and
change management, “The digitization of processes simplifies deployment and subsequent value
capture, so operating units face decreased implementation‐ or compliance‐related problems.”
As shown in Figure 5, inputs to digitization are received from the change advisory board, IT, the chief
technology officer, and the chief information officer. A digitization exercise that involves controls,
automation, and preparation of Dash Boards also connects with process deployment and support teams
throughout the life cycle of the process. Each process step must evaluate digitization needs upfront so
that when processes are rolled out, the corresponding digitization is also ready for automating process
deployment.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services Limited
4242
Process Digitization
Process
DesignDigitization
Identify digitization requirement
Digitize process workflow
Sign off User Acceptance Testing
Release Digitized Process Workflow
Process Acceptance
Review high level processes and Sign off Integrated Process Release Plan
Process Digitization
From
Process
Design &
Improvement
Process
Deployment/
Support
From CAB
Process
Deployment
Inputs Process Steps Linkage
OU PEn
OU PE1ProcessDesign &
Improvement
ProcessDigitization
ProcessDeployment
ProcessCompliance
OUPE2
Figure 5: Process Digitization
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Operating Tactics in Tough Times: 9 Case Study: Tata Consultancy Services
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To assist with the process deployment, TCS leverages digitized tools encompassing several areas of
integrated quality management systems throughout the project life cycle. Figure 6 depicts the process,
tools, and methods that support digitization.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services L imited
Digitized tools which enable iQMS adoption throughthe Project Lifecycle (Example)
D-25TQASIPMS
Lessons Learned/Best Practices
Template/Planning
Data
Project
Status/Metrics
Project data
Project planned &actual data/ Risks
Project closureInformation/Project end metrics
EQP, GQD
Project Start-up
IPMS
ProjectPlanning
IPMS
ProjectManagementReview(PMR)
EQP
Project Wind-up
IPMS
ProjectMonitoring
(PM)
GQD, TCS
RP, D25
Project AuditTQAS
43 Figure 6: Digitization Process, Tools, and Methods
Process digitization by a centralized IT team enables the rollout of consistent applications for a set of
processes across TCS. This is a critical necessity considering the large number of employees spread
around multiple offices around the world. But this does not rule out the need for having tailored or
customized processes for individual operating units.
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Operating Tactics in Tough Times: 10 Case Study: Tata Consultancy Services
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Process Deployment
“Designing the best processes is pointless unless those processes are deployed well,” said Arora. Figure
7
shows
the
enterprise‐
wide
process
deployment
strategy
at
TCS.
The
process
excellence
group
oversees deployment and is accountable across operating units. A deployment plan is developed by the
Process Deployment Support Group using input from process designers, the change advisory board, as
well as process digitization and audit and compliance staff. Process deployment incorporates all aspects
of implementation including communication, training, workshops, and deployment support. TCS tracks
training and deployment status metrics and collects feedback in order to identify improvements and
communicate change requirements. Any deployment‐related challenges or issues are addressed by the
core process design and improvement teams.
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Copyright ©2009 Tata Consultancy Services L imited
44
Process Deployment
Prepare Deployment Plan
Prepare & Update Communication P lan &Deployment Checklist
Prepare training plan for OU PEG
Conduct training workshop for OU PEG
Support Deployment
Tracking training and deployment status
Collect Feedback
Identify improvement
Communicate change requirement
Process
DesignDeployment OU PEG
Inputs Process Steps Linkage
Review high level processes and Sign off Integrated Process Release Plan
Process AcceptanceFrom CAB
on
Integrated
Release Plan
From
Process
Digitization
From
ProcessDesign
From OU PE
based ondeployment
challenges/
issues faced
From Audit &
Compliance
on change
requirement
To Core
Process
Design and
Improvement
To OU PE for
deployment in
the OU
OUPEn
O U PE1ProcessDesign &
Improvement
ProcessDigitization
ProcessDeployment
Process
Compliance
O U PE2
Figure 7: Process Deployment
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Operating Tactics in Tough Times: 11 Case Study: Tata Consultancy Services
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Process Compliance and Audit
The final element in the TCS process excellence wheel is compliance. Figure 8 shows the compliance
processes
at
TCS.
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Copyright ©2009 Tata Consultancy Services Limited
51
Compliance
Compliance
Review &
Sign off Process
Design
DesignTeam
Prepare ACMTraining Material
Update Audit
Checklist
ConductProcess Audit
Communicatechange
Analy zeNon Compliance
DigitizationTeam
DeploymentTeam
Process Acceptance ACT
Process Verification
Prepare IntegratedRelease (feature) Plan
(Budgeting)
Decide on piloting
Release process
ProcessDesign &Improve
ment
Need
NO
Yes
Process
Design &Improve
ment
Process Acceptance CAB
Review & Sign off ProcessDesign
OUPEn
OUPE 1ProcessDesign &
Improvement
ProcessDigitization
ProcessDeployment
Process
Compliance
OU PE 2
Figure 8: Compliance
This process is also used to prepare for internal audits. TCS audits the deployed processes in order to
ensure effectiveness apart from compliance. “We don’t want to prepare for an audit per se; we want to
be prepared for an audit at any time,” said Arora. “We want to make sure that the process is effectively
used and is providing business value.”
Enabling Tools for Process Management
TCS leverages several tools to enhance and promote process management. Srinivasan said: “Doing all
these things in manual mode would be impossible. That is why we automate everything and focus on
developing in‐house tools for improvement.”
Process modeling, for example, is supported by a BPM tool platform for process design and integration.
A BPM platform crease high‐level process models, whereas a wiki portal stores detailed quality
management processes, guidelines, and templates. This wiki platform promotes collaborative authoring
and encourages social networking. Design teams create process content and provide feedback directly
using the wiki platform. Process designers access feedback comments entered as discussions in wiki
pages and in other KM platforms in order to improve the processes.
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Operating Tactics in Tough Times: 12 Case Study: Tata Consultancy Services
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KnowMax, TCS’ KM platform, is leveraged for collaboration during process design, digitization, and
improvement. KnowMax helps to capture and store explicit knowledge in terms of structured asset
types such as case studies, caselets, white papers, and project profiles and also promotes collaboration
and interaction to help uncover tacit (unstructured) knowledge for the organization. TCS’ KM platform
plays a significant and pivotal role in enabling enterprise knowledge to be shared across the enterprise.
IMPACT is an additional tool within the KM platform that helps monitor and manage improvement
projects. This tool shows work flow, shows improvement action by individuals, and provides business
benefit information. In addition, TCS deploys feature‐rich tools such as IdeaMax and CTO Blog that act as
platforms to capture innovative ideas from employees. Finally, a number of improvement tools and
methodologies including Lean, DMAIC (define, measure, analyze, improve, control), design pattern,
technology change management, and process change management are used across the organization to
promote process institutionalization and employee engagement, as well as improve operational
efficiency.
Innovation and Incremental Improvements for Process Excellence
Innovation and incremental improvements also play an important role in developing and sustaining
process improvements. At TCS, breakthrough innovation methods are supplemented by incremental
improvements to enable a holistic process improvement approach. The organization’s goal is to focus on
innovation and encourage participation across the organization. Equal importance is given to building
alliances to promote business‐aligned innovation and reward and recognize individuals and teams for
innovative contributions.
A director
of
the
technology
organization
works
directly
with
academia,
alliance
partners,
and
stakeholders to nurture innovations. TCS has more than 20 innovation laboratories to foster innovation
in new technology and process areas. Senior managers also invite teams to participate in idea
generation and innovation programs to implement ideas across the organization. TCS’ technology
excellence group was created to promote innovation in new technology areas that in turn pass on the
knowledge to project delivery teams. Together, these investments drive an approach of “learn once and
replicate everywhere” within TCS.
Innovation is highly valued within the organization, and employees are recognized and rewarded for
contributions to innovation and process excellence. “We’ve learned over time that money is not the
only motivator;
employees
are
also
motivated
intrinsically
through
other
types
of
reputation
models”
said Srinivasan. Accordingly, the organization recognizes contributions using publications that describe
the innovation and highlights the achievement of an employee. Such publications are shared across TCS.
And a reward system called Gems enables employees to collect points that can be redeemed for
merchandise in different stores. Employees are encouraged to submit innovations into an idea
generation platform either individually or through teams.
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Operating Tactics in Tough Times: 13 Case Study: Tata Consultancy Services
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The Tata Group encourages innovation from its companies, including TCS, through a popular annual
competition. Teams submit innovations to regional networks and forums and then advance to a final
round of competition at headquarters. Selected teams are recognized in a formal event by the Tata
Group chairman.
PROCESS ADAPTABILITY AND QUALITY
TCS developed a robust quality framework for process management that encompasses industry
standards, an integrated quality management system, and organizational value propositions. Figure 9
depicts the underlying quality framework for process management.
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Copyright ©2009 Tata Consultancy Services L imited
31
The underlying quality framework for process management
Strengths iQMS Value Proposition
On-Time, On-
Budget, Defect-
free delivery
Year-on-Year
productivity
improvement
Agree, deli ver and
validate value
provided
Reduce cost of
quality
Defect
Prevention
Continuous
Improvement
Industry stds
ISO9000/
IS027001/
IS020000
CMMi
PCMM
Domain
TL9000 - Tele
AS9100-Aero
ISO13485 -
Medical devices
Integrated Quality Management System
TCS Quality Policy
To achieve customer and ot her stakeholders’ satisfaction by delivering s olutions
which meets their needs and expectations
Solution/Service
Delivery
Processes
People
Processes
Tools and
Technology
Ass ets
Security
Processes
Policies
Process
Hand Books
Procedure
Manuals
Standards, Guidelines
Checklists, Templates
Knowledge
Management
Support
Processes
TBEM/ MBNQA
Figure 9: Quality Framework for Process Management
All processes in the organization undergo detailed analysis to ensure efficiency and effectiveness, by the
respective
units
within
Process
Excellence
Group.
When
new
processes
are
designed,
process
indicators
are defined in terms of output and outcome indicators. Output measures are indicators during the
deployment of the processes, whereas outcome measures track the value (benefits) generated after the
deployment of the processes. The final benefits of each process are identified and measures are
collected in order to fully examine the value of the process. For example, a deployment measure related
to knowledge management would have typical output measures like the number of people using the
platform, downloading data, and uploading artifacts. On the other hand, measures such as reduction in
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proposal management cycle time and productivity using reusable assets describe the outcome through
the KM processes.
To measure process deployment, TCS uses a process deployment index, illustrated in Figure 10. Process
metrics are segmented into different areas, such as sales processes, knowledge management, and
finance. Each area tracks relevant measures to determine the level of deployment across the
organization. The measures from each process area rolled up to compute overall process deployment
status within the process area. Depending on the process, on a weekly or monthly basis, the
organization can track how a process is deployed across the organization.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services Limited
45
Measuring Process Deployment using ProcessDeployment Index (PDI)
Process Deployment Dashboard and Index (PDI)
Selected measures from each box to compute overall process deployment status
Process
Area 1
Metrics
Process
Area 2
Metrics
Process
Area 3
Metrics
Process
Area 4
Metrics
…. … …
OU Head
BSC
Global
PEG Head
BSC
Corporate
BSC
Organizational Business Objectives
Mostly
Lead
Measure
s
Mix of
Lead &
Lag
Measure
s
Lag
Measure
s
Process
Area (n)
Metrics
PDI PDI
PEG Core Level Internal Dashboard (Readiness and Deploym ent Measures)
Composite status of Process Deployment
Results of Deployment (Some BSC Measures should have a bearing with Measures of PDI)
Lag
Measure
s
Appr oach
Deployment
Results
Goals
Figure 10: Process Deployment Index
If a process is not achieving the required level of deployment, then every effort is made by the Process
Excellence group to uncover the root cause of noncompliance. Additional training, coaching, or
mentoring is provided by the concerned design groups supported by the Process Deployment Support
group if a process is not deployed effectively. The initial focus for new processes is to reduce the
variation in
the
process
deployment
index
measures
across
different
operating
units
before
improvement measures are attempted. A variation in results indicates a difference in deployment levels,
which in turn indicates a lack of institutionalization. However, determining a root cause for
noncompliance is a key focus. “We need to understand the root cause of why people are not using a
certain process. In some cases, it is a training issue. But if it is because an employee is not finding value
in the processes, we need to know so we can communicate the business value better,” said Arora.
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TCS tracks and monitors process deployment across all of its operating units. Using a global dashboard
system, employees have a window to view all measures across the organization. Measures are
consolidated at the operating unit level, process area level, and at the enterprise level to provide a
corporate view and generate meaningful discussion. All processes must reach a stipulated maturity level
across operating units within a given time frame. This process for the process deployment index is
strictly adhered to by all operating units of TCS, including those created through acquisitions.
The initial focus for new processes is to reduce the variation in the process deployment index measures
across different operating units before improvement measures are attempted. A variation in results
indicates a difference in deployment levels, which in turn indicates a lack of institutionalization.
During acquisitions, process integration is supported through a framework that compares existing
processes to TCS processes. The objective is to identify the best processes. “If our processes are more
mature and effective, then we use our process,” said Arora. However, in some cases, TCS identifies
processes in the acquired organization that demonstrate a better value. It is extremely critical that
processes and technology be integrated for achieving better adoption. Legal and cultural requirements
are also considered during process integration.
Change Management and Communication
According to Arora, effective change management and communication are critical to achieve process
excellence. “Communicating business value is critical because people, not technologies, drive process
excellence, and those people need to be aware of the value in adopting any process,” he said.
At TCS, change management ensures consistent process adoption across the organization. Its change
management model (Figure 11 on page 16 below) is segmented into analysis, planning, and execution.
In the analysis phase, stakeholder analysis, benefit identification and planning, and a change impact
assessment feed into a change readiness assessment. The change readiness assessment examines
change response behavior and assesses readiness. The planning phase is guided by a training and
communication strategy. The change management plan summarizes concern areas to prepare for and
details how to facilitate the change program. Finally, the execution phase involves training and
communication and possibly organizational restructuring and role alignment. In some cases, the change
management strategy may require the organization to redefine roles and responsibilities. Each
operating unit
leverages
dedicated
change
agents
to
ensure
implementation,
communication,
training,
and process adoption.
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15th J uly 2009
Copyright ©2009 Tata Consultancy Services L imited
Organizational Change Management for ensuring
process adoption
47
A Identify & engagekey stakeholders
B Identify, prioritize& set measures
C Assess changeimpact
BenefitIdentification
& Planning
Business
Solution
StakeholderAnalysis
Change ImpactAssessment
Change Readiness
Assessment
Training
Delivery
ChangeManagement Plan
CommunicationDelivery
OrganisationRestructuring
B C
D
G
H I J
D E xamine change
responsebehavior &assess readiness
G Summarizeconcern areas &
action plan forfacilitating thechange program
H Execute trainingplans & measure
effectiveness; re-plan based onfeedback
I Deploy
communication plan& measure
effectiveness; refinecommunications
J Re-define roles& responsibilities
TrainingStrategy &
Plan
CommunicationStrategy &
PlanE F
E Devise training
strategy & planF Formulate
communicationplans, describechannel &interventions
Analysis
Planning
Execution
A
Figure 11: Change Management Model
TCS uses a communication management strategy to ensure process improvements are clearly
articulated across the organization. In the early stages of process rollout, communication planning
determines information
and
communication
needs.
Once
needs
are
defined,
communication
plans
address how to make information available to stakeholders in a timely manner. The organization also
develops ways to measure effectiveness of communication.
TCS adopts a number of one‐way and two‐way communication channels that leverage a combination of
push and pull communication strategies. Its objective is to make sure communications cascade across
the organization both vertically and horizontally on a regular basis. One‐way communication channels
include:
• KnowMax—a KM portal,
• @TCS—an internal monthly magazine,
• Ultimax News Corner—an intranet site,
• screensavers and wallpapers on PCs,
• internal e‐mail broadcast,
• surveys,
• process events,
• wikis, and
• leadership videos.
The organization also uses the following two‐way communication strategies:
• reviews,
• internal customer connections,
• wikis,
• a KM discussion board,
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• IdeaMax—an idea generation platform,
• internal blogs,
• e‐
mails,
• process events, and
• town hall meetings.
CUSTOMER REQUIREMENTS
Obtaining stakeholder and practitioner feedback is critical to our success. Our tools and techniques are designed to capture immediate feedback on cumbersome, difficult, and redundant process steps. —A. Srinivasan, Vice President and Global Head of Knowledge Management Systems and Process
Digitization, TCS
According to Srinivasan, stakeholder and practitioner feedback are critical to process improvement at
TCS. Accordingly, each process collects feedback from multiple types of consumers, including customers,
practitioners, partners,
suppliers,
alliance
partners,
shareholders,
professional
bodies,
and
analysts.
Figure 12 shows the feedback collection methods employed by TCS. Customer feedback, for example, is
gathered strategically and tactically. At the strategic level, customer input is obtained from client
engagement and leadership teams, client visits, client events, and a customer survey process. Customer
feedback is also obtained through interaction with client partners and during project reviews. Feedback
from partners, shareholders, and regulatory bodies is gathered from a variety of teams and meetings
that incorporate key shareholders and partners.
15th J uly 2009
Copyright ©2009 Tata Consultancy Services Limited
29
Stakeholder and Practitioner Feedback Collection
•Provides immediate feedback on cum bersome/ difficult to use/ redundant pr ocess steps
•Creates buy in amongst users, and reduces process deployment drag
• Strategic Level: Client Engagement by Leadership Team, Client Visits, Client Events,Lifeline survey
• Tactical Level: Client interaction with Client Partner/GRM, Client Events, Lifeline Survey• Operational Level: CSAT Survey, Project Review
Customer
Feedback
• Partner Surveys,• Partner Relationship Management• Leadership Team & Partner connect
Partner/
Suppliers/
All iances
• Feedback through AGM• Shareholder compliant handling by Company Secretary• Leadership Team connect
Shareholders
• Participation in forums organized by Government agencies, Regulatory bodies,Professional Bodies
• Leadership Team connect
Government/
Regulatory Bodies/
Professional Bodies
• Analyst Relationship Managers• Analyst Meets & participation in Analyst surveys, forums• Analyst reports
Analysts
• Internal Customer Connect• Advisory Council Meetings• Feedback collected from deployment
support
Practitioner
Feedback
• Pilot & Process Reviews• Surveys (Dipstick and Detailed)• Wiki Platform• Ideamax
Figure 12: Feedback Collection
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TCS’ relationships with academic institutions are another opportunity for continuous feedback. TCS
often recruits employees from universities and works closely with those universities to ensure it is
obtaining the best possible candidates. Every six months, leaders from TCS meet with heads of
universities to share the current business plan and communicate knowledge gaps in its work force.
University leaders use this information to design courses that are integrated into the curriculum.
Ongoing collaboration between TCS and universities is mutually beneficial; students receive training that
makes them more marketable in the work force, and TCS ensures it will attract employees that fill a
business need.
TCS also obtains practitioner feedback through its advisory council meetings, pilot and process reviews,
and surveys. The process excellence group also relies on a number of internal platforms to collect
practitioner feedback. The organizational wiki platform, IdeaMax, and the internal customer connect are
some of the technologies that collect process feedback. As part of its platform, TCS has a number of
social networking platforms (like an enterprise‐wide Q&A platform) nurturing employee collaboration
and these platforms also play a direct or indirect role in gathering feedback. Apart from this, virtual
communities are often formed in the KM platform to discuss customer feedback or other aspects that
affect process improvement.
As noted, customer requirements are gathered from surveys and customer satisfaction metrics. TCS
uses frequent customer satisfaction surveys to collect feedback that can affect process excellence. Each
project is required to issue a customer survey every six months. Data from these surveys is tracked
against process maturity metrics to ensure TCS is meeting client expectations. In addition, a lifeline
survey is issued to ensure the organization is creating value for the customer. Customer feedback is used
to develop benchmarks and ensure consistent performance. The customer perspective is important; TCS
strives to ensure a positive experience for customers on the most critical parameters from their
perspective. Data is correlated to customer satisfaction to ensure there is alignment between internal
and external measures.
TCS also tracks measures such as on‐time delivery, on‐budget delivery, and defect‐free delivery. The
delivery and non‐delivery measures are made available to customers through a dashboard that
customers use to provide instant and online reviews of ongoing project activities.
Since employees are the largest consumers of processes, their feedback is also collected and
incorporated as a critical measure into TCS’ organizational process dashboard. TCS tracks the overall
associate satisfaction index using an internal satisfaction survey. More than 110,000 employees
completed the survey in 2009.
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CRITICAL SUCCESS FACTORS, LESSONS LEARNED, AND THE FUTURE
Process excellence is a continuous process. It is a journey that continues year after year. —Govindarajan
Jagannathan,
Executive
Vice
President
and
Global
Head
of
Business
Excellence
and
Leadership and Governance Process Design, Process Excellence Group, TCS
TCS’ success in process excellence is validated by the awards it receives, high customer satisfaction, and
continuous growth. In FY 2009 its revenues exceeded $6 billion, which earned the organization a rank of
442 on the Forbes Global 2000 list. Among global IT service organizations, TCS is already ranked in the
top 10 for its revenue, profits, market value, and employees. The ranking is based on the company’s
study of various companies’ websites. Engagements continue to grow both in size and scope. Projects
that exceed $50 million increased 380 percent in 2008.
During its
process
excellence
journey,
TCS
identified
several
critical
success
factors.
First, it is critical to involve all relevant stakeholders in process management. TCS leadership support for
its process improvement strategies plays a critical role. For example, senior executives interact with key
stakeholders in keeping processes improved on a continual basis. Senior leaders also help promote
change management strategies and work closely with design teams on a regular basis.
Secondly, it is important to align processes with overall business needs and strategy. Identifying business
value and appropriate measures helps ensure process improvements are aligned with strategy and
improving efficiency. “If you can’t correlate a process to a business value, then you can’t be sure it is
improving the
organization,”
said
Jagannathan.
Third, it is important to focus on organizational change management and address challenges in the
process design phase. “Processes must be focused on people, not technology,” said Arora. “It is people
who ultimately deploy and integrate a process.” As a result, TCS finds that processes must be aligned
with the expectations and motivations of the work force. Change management and communication
strategies help obtain buy‐in and compliance across the work force.
Also, organizations must focus on enablers such as digitization, competency building, and reuse. “You
can’t be expected to manage processes manually; it is painstaking,” said Jagannathan. “Everything must
be automated
and
feed
into
the
collective
knowledge
base
of
the
organization.”
Finally, it is important to leverage forums that focus on best practices and knowledge sharing.
Continuous improvement relies on feedback from stakeholders, practitioners, and others that use the
processes. Social networking and collaboration are important to the effectiveness of each strategy.
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TCS also shared lessons learned from its process excellence journey. The organization emphasizes the
importance of a systematic process deployment strategy in conjunction with a robust change
management and communication strategy. “You can have the best processes in place, but unless
someone is using them, they have no value,” said Jagannathan. In addition, the organization
recommends:
• process enablement through competency enhancement,
• process enablement through digitization,
• customer centricity and focus on business value of any process that is to be deployed, and
• simple and integrated processes.
Process excellence is a journey, and TCS strives to constantly improve. The goal is to ensure that all
processes are simple, agile, integrated, and reflect Lean process management.
TCS‘processes evolve based on market and customer needs. Each year the environment changes and
TCS must update its processes and offerings to address changing customer needs. Some of the changes
in 2008 resulted in productivity and customer relationship improvements. The focus in 2009 is to deliver
more value to customers using fewer resources. Accordingly, TCS focuses on operational excellence and
the business adviser program in response to changes in the economy. Jagannathan said: “Times change
and processes also change. With that, we implement changes in the process excellence group as well.”
Operating during challenging periods requires increased operational efficiency. Operational efficiency
can be achieved in several ways, according to Jagannathan. He advises focusing on the design of
appropriate processes in several functional areas like sales, delivery, marketing, and HR. Streamlining
processes using digitization also makes it easier to manage deployment. Process efficiency relates to
how well processes are deployed, whereas measuring business benefits relate to effectiveness.
Designing processes and digitizing appropriate processes with a focus on measuring efficiency and
effectiveness are key enablers for identifying and reducing waste, which contributes to operational
efficiency. Aligning the process design with business strategy and keeping the processes agile through
regular feedback from multiple stakeholders cannot be and should not be compromised, said
Jagannathan. Providing platforms for sharing knowledge across the organization helps accelerate
organizational learning. Finally, being transparent on process and related measurement details
enhances customer confidence and plays a substantial role in fostering a long‐standing relationship with
customers.
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