growing your organisation webinar 12 august 2015 … · webinar 12th august 2015 suparna dua...
TRANSCRIPT
Growing Your Organisation
Webinar 12th August 2015
Suparna Dua
Business Advisory Team
Contents
• Vision & Mission
• Values & Culture
• About Organizational Development- Balanced Scorecard driven strategic realignment
• Revenue
• Operational Efficiency
• Asset Efficiency
• Governance
• Execution Framework
• Q & A & Conclusion1
• An organization’s vision statement should reflect the organization’s
fundamental objective and provide a strategic direction. It is a
structured outcome of evaluation of the current situation combined with
goals for the future.
• Organization should set the vision and periodically re-align the vision to
market needs.
• The mission should be to achieve the vision through a well-defined
strategy with the best in class resources.
Vision & Mission
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Infosys
Vision:
To be a globally respected corporation that provides best-of-breed
business solutions, leveraging technology, delivered by best-in-class
people.
Mission:
To achieve our objectives in an environment of fairness, honesty, and
courtesy towards our clients, employees, vendors and society at large.
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Tata Sons
• “At the Tata group we are committed to improving the quality of life of
the communities we serve. We do this by striving for leadership and
global competitiveness in the business sectors in which we operate.
• Our practice of returning to society what we earn evokes trust among
consumers, employees, shareholders and the community. We are
committed to protecting this heritage of leadership with trust through the
manner in which we conduct our business.”
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Values & Culture
• Core values are the deeply ingrained principles that
guide all of a company’s actions; they serve as its
cultural cornerstones.
• Culture is best illustrated by demonstrating a tone at
the top that exemplifies the organization's culture by
way of specific targeted actions
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Tata has always been values-driven. These values continue to
direct the growth and business of Tata companies.
Integrity: We must conduct our business fairly, with honesty and
transparency. Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and
humanity for our colleagues and customers around the world, and always
work for the benefit of the communities we serve.
Tata Sons- Core Values
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Tata Sons- Core Values
• Excellence: We must constantly strive to achieve the highest possible
standards in our day-to-day work and in the quality of the goods and
services we provide.
• Unity: We must work cohesively with our colleagues across the group
and with our customers and partners around the world, building strong
relationships based on tolerance, understanding and mutual
cooperation.
• Responsibility: We must continue to be responsible, sensitive to the
countries, communities and environments in which we work, always
ensuring that what comes from the people goes back to the people
many times over.
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Organizational Development
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New Revenue Sources Cost per UnitCustomer Profitability Asset Utilization
Value from New Products and Customers
Improve Cost Structure
Increase Customer
Value
Improve Asset Utilization
Financial Perspective
Revenue Growth Strategy Productivity Strategy
Improve Shareholding Value
Shareholder Value ROCE
Customer Perspective:Customer Value Proposition
Product Leadership
Customer Intimacy
Operational Excellence
‘Innovate’(Processes that
create new Products and
Services)
‘Increase Customer Value’
(Customer Management
Processes)
‘Achieve Operational Excellence’
(Operations & Logistics Processes)
‘Be a Good Neighbour’
(Regulatory & Environmental
Processes)
Internal Perspective
Learning & Growth Perspective
TechnologyCorporate
CultureEmployee
Competencies
BSC driven Strategic Realignment
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Flipkarts Success Mantra
Great Customer Service
Easy to use website
Cash on delivery-60% of sales
30 day Replacement policy
Focused on user experience
All leading to customer delight!!
Flipkart: Customer Delight
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Revenue
• Fastest growing Domestic Airline Co,
• When Indigo entered the arena they had to compete with mature
competitors
• Only airline to make a profit
• Market Leader with 36% market share.
• Focuses on low cost, now low quality- Core principles
– On time performance- upwards of 95%
– Low fares
– Courteous & Hassle free experience
– Customer Delight- On time is a wonderful Thing
Understand what is VALUE to the customer and the market is yours.
Indigo Airlines: Value to the customer
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Revenue
• Market Opportunity of INR 60,000 crore, of which only 4-6 % is organised
• This was the problem, that gave room to a new player and ola cabs
was born. Using technology to enable ease of booking for consumers
and on the other hand increase efficiency for the driver.
• Ola had multiple models and car categories depending on the travel
need. This made it easy for the customer to make a choice. This was
then integrated with a smart-phone application connecting the driver
and customer
• Ola Cabs is one of the most valuable venture in India valued at US$
2.5bn
Ola Cabs: Solving a problem
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Revenue Growth
Volume Price Realization
Acquire New Customers
Retain and Grow Current
Customers
Leverage Income-Generating Assets
Strengthen Pricing
Revenue & Customers
• High Value potential customers
• Profitable products
• Effective Advertising & sales channels
• Client relationship management
• Account management
• Cross selling
• Developing IP• Return on treasury
funds• Divesting non-
performing assets.
• Price insensitive customers
• Rationalizing product portfolio
• Differentiated pricing
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Financial Perspective
CustomerPerspective
InternalPerspective
Learning and GrowthPerspectiveHuman Capital
Information Capital
Organization Capital
Long-Term Shareholder Value
Improve Sales Productivity
Expand Revenue Opportunities
Enhance Customer Value
Productivity Strategy Growth Strategy
Price QualityAvailabili
ty SelectionFunction
ality ServicePartners
hipBrand
Customer Value Proposition
Product/Service Attributes Relationship Image
• Understand segments• Screen unprofitable
customers• Target high-value
customers• Manage the brand
Customer Selection
• Cross-selling • Solution selling• Partnering/integrated
management• Customer education
Customer Growth
• Communicate value proposition
• Customize mass marketing
• Acquire/convert leads• Develop dealer networks
Customer Acquisition
• Premium customer service
• “Sole source” partnerships
• Service excellence• Lifetime customers
Customer Retention
• Market research • Profitability analysis• Market communication
• Customer database• Customer analytics• E-polling/sampling• Profitability analysis
• Customer-focused culture
• Personal goal alignment• Best-practice sharing
• Telemarketing• Product line knowledge• Customer
communications• Partner management• Database marketing• Lead management• Sales force automation• Web site design
• Customer-focused culture
• Personal goal alignment• Best-practice sharing
• Call centre protocols• Product line knowledge• Problem resolution• Customer feedback
• Customer interaction centre
• Problem tracking system• Order management
system
• Customer-focused culture
• Personal goal alignment• Best-practice sharing
• Consultative sales skills• Customer/industry
knowledge • Product line knowledge
• Customer information feedback
• Portfolio planning models
• Integrated order management
• Customer-focused culture
• Personal goal alignment• Best-practice sharing
Source: Strategy Maps by Kaplan Norton
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Revenue
Objectives Measures
Communicate value proposition Brand awareness (Survey)
Customise mass marketing Customer response rate to campaigns
Number of customers using promotions to sample the product
Acquire new customers Percent of leads converted
Cost per new customer acquired
Lifetime value (estimated) of new customers
Develop dealer/distributor relationships Dealer scorecard
Dealer survey feedback
Customer Acquisition
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Asset Efficiency
Property, Plant & Equipment (PP&E)
Receivables & Payables
Improve PP&E Efficiency
Improve Inventory Efficiency
Improve Receivables &
Payables Efficiency
Inventory
Assets Efficiency
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Operating Margin (after taxes)
Improve Customer
Interaction Efficiency
Improve Corporate/
Shared services Efficiency
Selling, General & Administrative
(SG&A)
Cost of Goods Sold (COGS)
Improve Development &
Production Efficiency
Improve Logistics & Service Provision Efficiency
Operational Efficiencies
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Governance
Company Strengths
External Factors
Improve Management &
Governance Effectiveness
Improve Execution Capabilities
Governance
Partnerships & CollaborationsAgility & FlexibilityDevelopment of strategic assets
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Diagnostics : Alignment with Goals
Diagnose Current state of
operations
• Review of functional area Vis. A
Vis Goals of the business
• Balanced Scorecard framework
- Align strategy to growth.
• Alignment of all key functions
with the goals of the business
• Outline Operational plans
• Revenue
• Finance
• People
• Governance
Customer Perspective
“To achieve our vision, how must we look to our
customers?”
Financial Perspective Strategy
“If we succeed, how will we look to our shareholders?”
Internal Perspective
“To satisfy our customers, which processes must we excel
at?”
Learning & Growth Perspective
“To achieve our vision, how must our organization learn
and improve?”19
• Organizations should consider a highly focused execution plan, where each element of a chosen
strategy is dissected, assigned to a process owner, and executed within a defined time frame.
• The enclosed chart symbolizes the execution framework:
Execution
Phase-1
Preparation & Approval
Phase II
Strategic Communication
Phase III
Cascading & Alignment
Phase IV
Implementation-Execution
Phase V
Assessment & Review
Phase VI
Innovate, Improve &
Adapt
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Execution Framework- Implementation
Organization should create competitive advantage by developing strategic execution capabilities.
The way to implement this framework is by ensuring that the ten critical success factors outlined are well understood and implemented.
1. Understand the organization’s unique capabilities2. Develop programs to upscale core capabilities3. Develop partnerships4. Develop a Balanced Scorecard of Goals and Measures for all critical functions.5. Ensure alignment at the highest level.6. Take sponsorship of key initiatives seriously.7. Spend more time, money and effort to overcome inertia.8. Think integration rather than division9. Drive towards parallel realignment 10. Understand that changing the hearts and mind of staff is challenging and requires
time and effort.
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Employees:• Develop Corporate Culture
(values, relationships, behaviour)• Service mapping to improve
employee satisfaction• Salary, Benefits & Retention• Communications• Development & Training
Customers:Product Positioning & BrandingMarket SupportChannels to MarketChannels SupportCustomer Support & Training
Operations:AdministrationMarketing & SalesOperationsBusiness Process Mapping & OptimizationInventory & ManufacturingCredit & CollectionsSupply Chain
Financial:Develop Performance MetricsManage Burn RateReduce RiskAccounting & Audits
Execution Framework- In action
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New Revenue Sources Cost per UnitCustomer Profitability Asset Utilization
Value from New Products and Customers
Improve Cost Structure
Increase Customer
Value
Improve Asset Utilization
Financial Perspective
Revenue Growth Strategy Productivity Strategy
Improve Shareholding Value
Shareholder Value ROCE
Customer Perspective:Customer Value Proposition
Product Leadership
Customer Intimacy
Operational Excellence
‘Innovate’(Processes that
create new Products and
Services)
‘Increase Customer Value’
(Customer Management
Processes)
‘Achieve Operational Excellence’
(Operations & Logistics Processes)
‘Be a Good Neighbour’
(Regulatory & Environmental
Processes)
Internal Perspective
Learning & Growth Perspective
TechnologyCorporate
CultureEmployee
Competencies
Strategy Map
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