NTPC Business Excellence Model

3 Days Awareness Programme

Course material
Presentation slides NTPC BE Reference Manual Stations last year position report Last year feedback report Guideline to write functional level report
1

The Course Objective

To enable participants to learn the Excellence Model and apply in their roles better :

Business Excellence framework

NTPC BE Model

Criteria Requirements
OFIs

DAY 1

Framework of Excellence

What is Excellence?

copyright OPEC

OPEC SKK

Excellence is meeting & exceeding continually the needs & Expectations of Stakeholders under most unfavourable conditions. Leaders do not do different things. They do things differently.

copyright OPEC

OPEC SKK

8 Fundamental Concepts of Excellence

1.Achieving Balanced Results 8.Taking Responsibility for a Sustainable Future ( Corporate Social Responsibility) 2.Adding Value for Customers

7.Building Partnerships 3.Leading with Vision, Inspiration & Integrity

6.Nurturing Creativity & Innovation 4.Managing by Processes 5.Succeeding through People

Achieving balanced Results

Long & short term needs & expectations of all stakeholders Gather needs & expectation Define the out comes Develop strategy Measure, Monitor & Improve.

Adding Value to Customers

Very purpose of existence is customer Who are our customers What are their needs & expectations Innovate products & services based on their needs & expectations Involve people, empower with tools, talent & competencies Constantly monitor performance Benchmark
OPEC SKK 8

copyright OPEC

Leading with Vision ,Inspiration, & Integrity Shape the future & make it happen Set & communicate clear Direction, goals & Strategic focus Understand Business drivers, be flexible & take timely decisions Create culture of Excellence Champion Values, Be role model- Integrity, social responsibility & ethics Managing by Processes Create structured & strategically aligned framework of processes, subprocesses End to end process to deliver strategy Identify key performance indicators & out comes Review performance, identify OFIs Involve people for continual improvement Identify Risks & mitigate
9

copyright OPEC

OPEC SKK

Succeeding through people

Value people for talent, creativity, skills & dedication Empower people sufficiently Align personal goals & team goals with Orgn. Goals Provide skills & competencies and support Help them to contribute to their & Orgn. Success. Define levels of performance and monitor Embrace diversity

Nurturing Creativity
Continual Improvement- creativity & innovation ( new ways of working/building partnerships/creating resources & competencies) Turn ideas into reality Set goals for creativity, Assess impact and Reward Engage all stakeholders in developing ideas Create culture of entrepreneurship
copyright OPEC OPEC SKK 10

Building Partnerships
Success today depends largely on effective partnership. Core purpose is to enhance capabilities ( Strategic & Operational) Extensive networks to identify potential partnerships Seek, develop and maintain sustained relationship Trust, Openness & respect Mutual benefit, support one another ( Knowledge, Resources & Expertise)

Responsibility for sustainable Future.

Economic, Social & Ecological sustainability Ensure safe & healthy environment for people & society Ensure people act with integrity & high standards of ethical behaviour Be transparent & accountable to stakeholders Ensure people & stakeholders participate in CSR activities

copyright OPEC

OPEC SKK

11

THE FUNDAMENTAL CONCEPTS AT DIFFERENT ORGANISATIONAL MATURITY STAGES

Fundamental Concept Start up On the Way Mature

Results orientation
Customer Focus

All relevant stakeholders are identified

Stakeholder needs are assessed in a structured way

Customer satisfaction assessed

Goals and Targets are linked to customer needs and expectations. Loyalty issues are researched. Policy, People and Processes are aligned. A leadership "model" exist. Comparative data and information is used to set challenging goals. People are innovative and creative in furthering organizational objectives

Transparent mechanisms exist to balance stakeholder needs & expectations Business drivers of customer satisfaction needs and loyalty issues are understood, measured and actioned.
Shared Values and ethical role models exist at all organizational levels Process capability is fully understood and used to drive performance improvements People are empowered to act and openly share knowledge and experience

Leadership and Constancy of Purpose Management by Processes and Facts People Development & Involvement

Vision and Mission are defined

Processes to achieve desired results are defined

People accept ownership and responsibility to solve problems

12

THE FUNDAMENTAL CONCEPTS AT DIFFERENT ORGANISATIONAL MATURITY STAGES

Fundamental Concept

Start up

On the Way

Mature

Continuous Learning, Innovation and Improvement Partnership Development

Improvement opportunities are identified and acted on

Continuous improvement is an accepted objective for every individual

Successful innovation and improvement is widespread and integrated

A process exists for selecting and managing suppliers

Supplier improvement and achievements are recognized and key external partners have been identified

The organisation and its key partners are interdependent. Plans and policies are codeveloped on the basis of shared knowledge Societal expectations are measured and actioned

Corporate Social Responsibility

Legal and regulatory requirements are understood and met

There is active involvement in "society"

13

Historical background

The Malcolm Baldrige National Quality Award ( TQM in USA since 1987)

The Deming Prize (Japan since 1951-400 winners so far)

EFQM (Established in Europe- 1988, Award since 1991)

Europe Japan

USA

Historical Background (contd) EFQM Model

EFQM formed 1988 ( Started with 14 members. Now 1000 members) Launch of The European Quality Award 1991 Joint sponsorship with EU and EOQ CII adopts the Model in 1994

Award Instituted in collaboration with EXIM Bank in 1994

MAIT institutes Quality Recognition Programme in 1995 IMTMA adopts the model in 1999 Ministry of Steel adopts the model for PMs Trophy for Integrated Steel Plants in 2000 Model revised in 2003 and 2009 ( EFQM 2010)

EFQM Model 2010

Enablers (How)50%
People 10% Leadership 10% Strategy 10% Processes, Products, & Services 10%

Results (What) 50%

People Results 10% Key Results 15%

Customer Results 15%

Partnerships and Resources 10%

Society Results 10%

L e a r n i n g, Creativity, and Innovation

Need for The NTPC BE Model

1.

Define Excellence/ Common language across NTPC.

(Customizing CII BE Model to suit NTPC requirements)

1. Measure progress on the journey towards Excellence and create a sense of urgency

2.
3. 4.

Provide a sound framework for self and external assessment to review and improve Strategy, Processes and Performance
Identify, share, and recognize good practices and performance. Provide learning opportunities to develop Business Managers

NTPC Model 2010

(figures in brackets indicate CII BE Model)

60% (50%) Enablers (How)

40% (50%)

Results (What)

HR 10% Leadership Planning & Strategy 10% 10% Partnerships and Resources 15% (10%) 15% (10%) Processes,

HR Results 10% Key Results Customer Results 10% (15%) 10% (15%) CSR & CD 10%

L e a r n i n g and Innovation

Organisational Competitiveness
Orgn. Competitiveness depends on level of performance & practices
80% 100% 100%

Not sure of sustaining

World Class
80%

PERFORMANCE

good performance Contenders

60% Weak 50%

Highly Vulnerable

Having untapped Potential

50%

60%

100%

PRACTICE Organization need to excel both in Performance & Practice

19

Where Do We Stand ? How much we know and others know about us?

Known to Self
Yes No External Assessment Low Maturity Level High High Maturity Level

Known to Others

Yes

Common Knowledge

Blind Spots

No

Private

Unknown

Self Assessment Low

The Four Kinds of Organizations-Change Mgmt. Where do we stand?

What to do
Orgn. Know Do not know

Urgency for Change

Aware

4.Lions

(World class,Mobelise entire orgn.)

Not Aware

3.Grasshoppers (Flit from Idea to idea. No constancy of purpose)

2.Snails (Slow to develop conviction or mobilise people)

1.Chicken with their heads cut off (Running around in circles,& Fire fighting)

Four Types of Organisations

The Organisations that :
1. Change by themselves( Excellent Orgns.)

2. Change, when told by others (quickly)

3. Change, when told by others several times (slowly)

4. Do not change even when told by others several times

Excellent orgns. have clear understanding of environment, present & future needs & expectations of stakeholders, developments in market place & competitors. They anticipate change & prepare themselves in advance to meet challenges. The rate of change has to be faster than change in environment to be competitive.

What are the Trigger Points for Change?

1. 2. 3. Vision / Mission / Values Company Plans Learning of Teams 4. 5. Benchmarking R&D Market Research Self Assessments Internal Audits Management Reviews

People and Partners Ideas Customer Demands (Present & Future expectations)

6.
7. 8. 9.

Changes in Competition
Changes in Government Policies Changes by Technical Collaborators / Partners Changes in Ownership

10.
11.

Changes in Economic Environment

Reaction to Problems / Failures

The excellent organizations have a sound system of measurement and review to pick up these triggers, understand them and then develop new approaches and/or refine the existing approaches and their deployment

Journey for Change

Benchmark Performance Level

Competitive
Entitlement

Un-initiated

Time

NTPC Model 2010

(figures in brackets indicate CII BE Model)

60% (50%) Enablers (How)

40% (50%)

Results (What)

HR 10% Leadership Planning & Strategy 10% 10% Partnerships and Resources 15% (10%) 15% (10%) Processes,

HR Results 10% Key Results Customer Results 10% (15%) 10% (15%) CSR & CD 10%

L e a r n i n g and Innovation

4.11.1CII The

Business Excellence Model

EXCELLENCE 9 32 344 RESULTS 4 8 178

ENABLERS 5 24 166

a 8

LEADERSHIP b c d 7 6 6

36

e 9

POLICY & STRATEGY a b c d 3 9 10 4

26

CUSTOMER a b 23 21 PEOPLE a b 22 21
43

44

a 7

PEOPLE b c 9 5

31

d 4

e 6

RESOURCES a b c d 7 7 10 7

40

e 9

SOCIETY a b 25 32

57

PROCESSES

33

a 6

b 9

c 6

d 4

e 8

KEY PERFORMANCE a b 9 25

34

Structure of the Criteria: Enablers 1a to 5e ( 24 sub-criteria)

1e

1a
1 Leadership

1b

1c

1d

Criterion parts (Carry equal marks) Guidance Points

5a 5 Processes
Criteria 4 &5 have 15% weight age where as 1,2,3 have 10%(NTPC Model)

RADAR: Management and Assessment Tool

2.Plan and Develop APPROACH

1.Required

RESULTS

3.DEPLOY Approaches

4.ASSESS AND REFINE Approaches and Deployment

28

Refer Page 5 of NTPC Reference Manual

The RADAR Assessment and Management Tool for ENABLERS (Page 7 of Ref Manual)
A p proach : So u nd : A p proach has a clear r a tionale A p proach has defined pro c esses A p proach foc u ses on s t akeholder n eeds refinements have been embedded in the approach over time I n tegrat e d : A pproach supports s trategy A p proach is linked to other A pproaches as appropriate

0%
No evidence or anecdotal

25%
S ome evidence

50%
Evidence

75%
Clear e v i den c e

100%
Com p rehen s i ve e v idence

No evidence anecdotal 0 5

or

So m e evidence

E v idence

Cle a r e v iden c e

Com p rehen s i ve e v idence 85 90 95

100

TOTAL for Approach Deployment: Implemented: A pproach implemented in relevant areas

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

0%
No evidence anecdotal or

25%
Implemented in of relevant areas

50%
Implemented in of relevant areas

75%
Implemented in of relevant areas

100%
Implemented in all re levant areas

Systematic: A pproach is deployed in a timely, structured way and with ability to manage changes in the environment if needed No evidence anecdotal or So m e evidence E v idence Cle a r e v iden c e Com p rehen s i ve e v idence

TOTAL for Deployment Assessment and Refinement: Measurement: R egular measurements of efficiency and effectiveness of the approach and its deployment are carried out M easures selected are app ropriate Learning and Creativity: Learning is used to identify internal and external good practices and improvement opportunities Creativity is used to generate new o changed approaches Improvement and Innovation: Output from measurement and learning is used to identify, prioritize, plan and implement improvements Output from crea tivity is evaluated, prioritized and used Refinement

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

0%
No evidence anecdotal or

25%

50%

75%

100%
Com p rehen s i ve e v idence

So m e evidence

E v idence

Cle a r e v iden c e

No evidence anecdotal r

or

So m e evidence

E v idence

Cle a r e v iden c e

Com p rehen s i ve e v idence

No evidence anecdotal

or

So m e evidence

E v idence

Cle a r e v iden c e

Com p rehen s i ve e v idence

TOTAL for Assessment and

0 0

5 5

10 10

15 15

20 20

25 25

30 30

35 35

40 40

45 45

50 50

55 55

60 60

65 65

70 70

75 75

80 80

85 85

90 90

95 95

100 100

OVERALL TOTAL

29

RADAR ANALYSIS OF ENABLERS

Approach Development of well defined processes & structured actions to achieve desired objectives
SOUND: -Clear Rationale: Reason to choose an approach is based on research or bench marking. -Defined process: well described/documented so that concerned people understand clearly. -Focus on stake holders needs: Approach should be basically to meet stakeholders needs, organizations objectives . -Refinement over time is embedded till maturity. INTIGRATED: -It has a logical link to strategy & other approaches designed to deliver the desired results now & in future.

DEPLOYMENT
IMPLEMENTED: * Approach is implemented in in all relevant areas, locations, and covers various employees, products or services. SYSTEMATIC: * Approach is deployed in a timely, structured and planned manner with ability to manage changes if needed.

ASSESSMENT & REFINEMENT

MEASUREMENT: Regular measurement of efficiency and effectiveness of approach and its deployment. Clarity exists on how frequently measurement is needed. LEARNING & CREATIVITY: Actions are taken to gain knowledge to achieve better understanding with in and outside business sector. Creativity is used for further improvement. IMPROVEMENT & INNOVATION: Learning and measurements have led to visible improvements in approach, deployment and results. Clarity exists on which innovative idea changes have already made or will make.

Measuring Excellence: Enablers

Use with Enablers : 1a to 5e ( 24 sub-criteria)
Excellence of Approach*
-Sound (focus on

Deployment
- Implemented in relevant areas - Systematically in planned manner

Assessment and Refine

- Regular measurement of approach and deployment for effectiveness. - Improvement based on results and learning from innovation creativity activities.

Stakeholders needs & defined process) -Integrated (with strategy)

0%

0%

0%

25%
50% 75% 100%

25%
50% 75% 100%

25%
50% 75% 100%
Refer Page 7 of NTPC Reference Manua 2010
33

Structure of the Criteria: Results (8 sub criteria)

Criterion
6 Customer Results 6a (75%) Perception data

Sub-criteria
6b (25%) Performance Indicators

7 People Results

7a (75%) Perception data

7b (25%) Performance Indicators

8 Society Results

8a (50%) Perception data

8b (50%) Performance Indicators

9 Key Results

9a (50%) Key Strategic Outcomes

9b (50%) Key Performance Indicators 9

6,7,8,9 have equal weight age of 10%(NTPC)

6a & 7a have 75% weight age

The Allocation of Results Perceptions Indicators Outcomes

(Stake Holders Needs & Expectations) ( Process Outputs ) ( Strategic)

6a 7a

8a
All other Stakeholders

8b 7b 6b 9b

9a

Key Results related to Strategy

Employees Customers
including stakeholder related key results

The RADAR Assessment and Management Tool for RESULTS (Page 8 of Ref Manual)
Relevance and Usability S cope and Relevance : : s of

0%

25%

50%

75%

100%

The scope of the results presented Addresses the needs and expectation relevant stakeholders Is consistent with the strategy and policies of the organization The most important Key Results are identified and prioritized Relationships between relevant results are understood I n tegr ity : Results are timely, reliable and accurate Segmentation: Results are appropriately segmented

Results presented and Relevance not relevance established established or for about of the anec d otal infor m ati on relevant

Results presented and relevance established for about 1/2 of the areas involved

Results presented and relevance established for about 3/4 of the areas involved

Resu l ts presented relevance established for all the areas involved

and

No evidence or integrity or anecdotal information

Timely, reliable and accurate for about results presented

Timely, reliable and accurate for a bout results presented

Timely, reliable and accurate results presented

Timely, reliable and accurate for all results presented

No segmentation

Usable segmentation for about of results

Usable seg mentation for about of results

Usable segmentation for about of results

All results are useably segmented

TOTAL for

Relevance and Usability

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

* Note : T he total here should not exceed t Performance Trends : :

he score given for scope and relevance

0%

25%
Positive trends and/or sustained good performance for about of results o ver at least 3 years Set, appropriate and achieved for about of Key Results Established, favourable and appropriate comparisons for about of Key results Enabling effect visible for about of results and some evidence that performance will be sustained 10 10 15 15 20 20 25 25 30 30 35 35 40 40

50%
Positive trends and /or sustained g o od performance for about of results over at least 3 years

75%
P o sitive trends and /or sustained g o od p e rformance for about of r e sults ov e r at least 3 ye a rs

100%
P o sitive trends and /or good sus tained per f o r man c e for all of resu l ts o v er at least 3 yea r s

Trends are positive AND/OR there is sustained good performance

No Results or anecdotal information

Targets: Targets are set for the Key Results Targets are appropriate Targets are achieved : No comparisons or anecdotal information No targets or anecdotal information Set appr opriate and achieved for about of Key Results Established, favourable and appropriate comparisons for about of Key results Enabling effect visible for about of results and some evidence th at performance will be sustained 45 45 50 50 55 55 60 60 Set appropriate and achieved for about Key Results Established, favourable and appropriate compar isons for about of Key results Enabling effect visible for about of results and some evidence that performance will be sustained 65 65 70 70 75 75 80 80 85 85 of Set, appropriate and achieved for all Key Results

Comparisons

Comparisons are made for the Key Results Comparisons are appropriate Comparisons are favourable

Established, favourable and appropriate comparisons for all results Enabling effect visible for all results and comprehensive evidence that performance will be sustained 90 95 100 90 95
100

Causes: The relationship between Results achieved and their Enablers is understood Based on the evidence presented, there is confidence that positive per will be sustained in the future. TOTAL for Performanc e No confidence on causes/anecdotal information formance 0 0 5 5

OVERALL TOTAL

36

RADAR ANALYSIS OF RESULTS RELEVANCE & USABILITY:

SCOPE & RELEVANCE: The results address the needs & expectations of relevant stake holders and be consistent with strategy & policy. Most important and key results are identified and prioritized. Relationship between key results are understood. INTEGRITY: The results are timely, reliable & accurate. SEGMENTATION: Results are appropriately segmented so that they lead to identification of OFIs in specific segments.

PERFORMANCE
TRENDS: TARGETS: Trends of 3 years are positive & sustained performance Appropriate targets (SMART) set for key results as per strategy and objectives. And targets are achieved. COMPARISONS: Key results are compared appropriately with others with in and out side the organization, best in class/ world class, leading to appropriate target setting. Comparisons to be favourable. CAUSES: The relationship between the results and approaches is

understood, leading to suitable corrective actions in

approach and deployment or strategy & policy for sustained positive performance.

Comparisons
Performance (Results) and Practices (Enablers)
(For Multi-Division, Multi Product, Multi Location, Organisation)

HIERARCHY
Internal Competitor Industry
Group Average Group Best Collaborator Nearest Competitor Best Competitor Industry Average Upper Quartile of Industry Top 10% of Industry Best-in-Class (National, Chosen Market, World)

Generic

CHECK FOR
Identity of Source Dependability of Source Why this Benchmark was chosen? Relevance of Benchmarks How old is the Benchmark?

39

Measuring Excellence: Results

Use with Criteria: 6a, 6b, 7a, 7b, 8a, 8b, 9a, and 9b

Relevance & Usability - Scope & Relevance( Timely

Consistent with strategy & Needs, comprehensive)

Performance - Trends
Positive trends, sustained good performance)

- Integrity (Accurate, reliable) - Segmentation (Appropriately segmented to identify area of concern)

0% 25% 50% 75%

- Targets for Key Results (Appropriate and to be achieved - Comparisons of Key Results( with best in class internally & externally) - Causes (Relationship between enablers and results to understand sustenance) 0%

25% 50% 75%

100%

100%
40

Refer Page 6 and Guidelines on Pg 36, 41&42, 50&51, and 53&54 of NTPC Reference Manual 2010,

Understanding Criteria Linkages

41

Linkages amongst Results Criteria

Customer Results

Key Performance Results

9 7

People Results

Society Results

42

Model Dynamics

1.

Enablers
Time lag

Results

2.

Leading indicators

Lagging indicators

Up-stream
6b 7b 8b

Down stream
6a 7a 8a 9a

9b

Process Outputs Performance indictors

Perceptions & Strategic 43 Outcomes (Vision & Mission)

1. LEADERSHIP
1a) Leaders develop Mission, Vision, Values and are role models of a culture of excellence.

1 b) Leaders define, monitor, review and drive the improvement

of Organization's management system 1 c) Leaders engage with External stakeholders (Customers, Partners and Society Representatives) 1 d) Leaders reinforce a culture of excellence with organization people. 1 e) Leaders ensure that Organization is flexible and manage change effectively

2.0 Policy and Strategy

2 a) P&S are based on understanding needs & expectations of both stakeholders and external environment 2 b) P&S are based on understanding internal performance & Capabilities 2 c) Strategy & Supporting policies are developed, reviewed and updated

2 d) P&S are communicated and implemented and monitored

3. PEOPLE (41-50) How the Organisation manages, develops and releases knowledge and full potential of its people (individuals, teams and organisation wide) 3 a) People plans support Organizations strategy 3 b) People knowledge developed. 3 c) and capabilities are,

People are aligned, involved and empowered

3 d) People communicate effectively through out the orgn. 3 e) People are rewarded, recognized and cared for

4. Partnerships & Resources

.4 a) Partnerships and suppliers are managed for sustainable benefit. Finances are managed to secure sustained success. Buildings, equipments, Materials and natural resources are managed in a sustained way Technology is managed to support delivery of strategy Information & Knowledge are managed to support effective decision making and to build orgn. Capability.

4b)
4c)

4d) 4e)

5. PROCESSES (41-50)
How Organisation designs, manages and improves processes to support its P & S and generate increasing value to customers and other stake holders. 5 a) 5 b) 5 c) Processes are designed and managed to optimize Stakeholders value Processes are improved using innovation for increasing value to customers and other stakeholders. Products and sources are designed and developed based on customer needs and expectations. 5 d) 5 e) Products and services are produced, delivered and serviced. Customer relations are managed and enhanced but

Relationships between criteria and sub criteria Some of the more obvious links between Enablers and Results are:
3
5

and
and

7
6

4/5
2 1

and
and and

9
5/9 8

Some examples of sub-criteria links are:

*1b(performance Mgmt), 2d(Strategy based on performance) and 5a(Process design)

*1c(Engaging External Stake holders), 4a (Managing partners &

Suppliers) and 5e( Customers relationship management)
49

*1d(Culture of excellence), 3e(Reward & recognition), and 5b(Process

Relationships between criteria and sub criteria

50

Contents of Position Reports

Position Report Station Criteria Requirements & Scoring Charts 1, 2, and 9 Other Information Responsibility

Future Challenges, Core Committee CSFs, Innovation.. Deployment HRM information for criteria 1, 2, 5a, 5b Analysis of trends Functional Team of lead/ lag indicator. Strategic challenges and best practices. Competition, Benchmarks RHQ & Station Commercial
51

3, 7, and 8

Functional

Relevant sub-criteria 4 & 5 and Lead/ Lag indicators supporting 6 to 9. ( No need to write separately about criteria 1, 2 &3 ). 6a, 6b and 5e

Customer

Day 1- Group exercise no 1

Participants to be divided in to 4 groups. Each group to pick one of the result sub criteria from 6b / 7b / 8b / 9b ( NTPC BE Model reference manual/ Position Report). Part A Group to check scope and relevance of parameters / indicators / aspects covered and suggest inclusion or deletion if any in NTPC manual. Now group to check weather these parameters have been included or not in their position report. If not then what should be included in next report. Part B - Group to pick up one result parameter of chosen sub criteria from position report and analyze it w.r.t sufficiency from integrity, segmentation, trend, target, comparisons and causes perspective.

Day 1- Group exercise no 2

Participants to be divided in to 4 groups. Each group to pick one of the result parameter from sub criteria from 9a or 9b ( NTPC BE Model reference manual). Part A Group to suggest what should be linked enablers and result parameters in criteria 1 to 8 to improve / link / support this chosen result of 9a or 9b. Part B - Group to pick up one result parameter of 9a or 9b from position report and analyze it wrt sufficiency from linkage perspective in their stations position report.

DAY 2

Process of Management

55

Process of Management (PDCA)

P D
Input Set new or revised goal Develop Implementation plan for accomplishing the goal Develop plan for measuring whether Implementation plan being followed Execute Implementation and measurement plans Output

Analyze reasons for poor adherence to Implementation plan or poor results and enhance knowledge

Monitor results and adherence to Implementation plan

C
56

Quantum of Change
Control + Improvement + Breakthrough
Breakthrough Quantum of Change

Improvement

Control

Time

57

Function of Management

Retainment........ To Maintain Quality level

of already achieved

Improvement..... Improve Quality level

more than that of achieved

Breakthrough.... Innovation of Improvement

58

Function of Management

Sr.Executive

Breakthrough

Division Head
Improvement Dept. Manager

Supervisor, Foremen Operator Retainment

None

Full

Share of Responsibility
59

Performance Measures : A Maturity Perspective

Monitor results

Understand process, Cause & Effect

K
Predict

Improve

Process is amenable to review and improvement

60

Measures : Maturity Levels

Learning, Innovation, Leadership Analysis and Action Deployment across the orgn.

Benchmark Improvement

Variation Reduction Targets

Planning, Management Priority

Segmented Global None

Detailed View (amenable to learning and improvement)

General View ( Permits monitoring, but not amenable to learning and improvement )

Gazing ( Low or No Management Priority )

61

Managing Processes
1. All Processes to be Standardised: Reduce variability
Discipline (conformance)

Deep knowledge of processes

Deeper knowledge of processes and still deeper for innovation Techniques of improvement

2.

All Processes must be improved

Ability to control, and improve may not always vest with same person. Cross Functional/ Cross Organisational Teams
Aspirational Mindset Leadership Issue Understanding of what makes people passionate: HR Processes Make it a way of life, so that who is at helm does not matter

3.

Passion to Improve

62

The Three Levels of Performance Management

Level

Goals

Design

Management

Organization level

Organization Goals

Organization Design

Organization Management Process Management Job/Performer Management

Process level

Process Goals

Process Design

Job/Performer level

Job/Performer Goals

Job Design

63

Process Owner

A Process Owner is a designated person responsible for the total performance and improvement of the process. Why a Process Owner? In order to

Control and coordinate processes and improve work.

Mediate competence and give support. Identify and support competence development. Follow up process performance.
64

Each process owner has to appoint a process team that meets regularly to...

Document the process Agree interfaces Arrange handshaking with next process Discuss measurements Suggest improvement schemes.

65

Criteria 5 - Requirements and Linkages

2005 2007 2009

DESIGN PROCESSES FOR EFFICIENCY AND EFFECTIVENESS

Criteria requirements slides represent central theme as per TO END PROCESS END EFQM. MANAGEMENT( STANDARDS, Participant to refer NTPC BE Model INDICATORS, INTERFACES, TARGETS) for customized perspective based on this theme.
REVIEW OF PROCESS FRAMEWORK FOR EFFECTIVE DELIVERY OF P & S

1b,2c,2d,3a,3c,4a,4c,4d,4e,5b,9a,9b

66

Criteria Requirements and Linkages

5a Processes are designed and managed
2009 2005 2007

Process Mapping Tools/ Techniques Lean Approach Technology Enabled Interface management Waste elimination

DESIGN PROCESSES FOR EFFICIENCY AND EFFECTIVENESS

Process Owners/Teams Sub-Processes Measures for control Documentation Audits and Reviews Standards(P,Q,C,D,S)

END TO END PROCESS MANAGEMENT( STANDARDS, INDICATORS, INTERFACES, TARGETS)

Process Families and Framework Critical Processes Review

REVIEW OF PROCESS FRAMEWORK FOR EFFECTIVE DELIVERY OF P & S

1b,2c,2d,3a,3c,4a,4c,4d,4e,5b,9a,9b

67

Criteria Requirements and Linkages

5b Processes are improved..
2009 Review of results 6 to 9 a), b) Gaps in Actual vs Targets, Benchmarks Learning from Study Groups/ CFTs/ QCCs R&D Outputs Strategic objectives Self Assessment, Internal/ External Audits (DWM, Break Out Sessions, Reviews by Process Management Teams, Business Performance Reviews, Focus Groups, Product, Process benchmarking ) 7QC tools Design of Experiments 6Sigma projects Lean BPR Revising standards and documentation Communication to Customers/ Dealers/ Suppliers/ After Sales Service/ Prodn Suggestions / Kaizens CFTs QCCs Joint improvement teams with Partners/ Customers/ IDENTIFY OPPORTUNITIES FOR INCREMENTAL AND BREAKTHROUGH IMPROVEMENTS 2005 2007

DEVELOP,EVALUATE, IMPLEMENT, AND COMMUNICATE CHANGES

INVOLVEMENT OF PEOPLE, CUSTOMERS AND PARTNERS

1b,1c,2c,2d,3a,3c,3d,4a,4c,4d,4e,5a,9a,9b

68

Criteria Requirements and Linkages

5c Products and Services are.
2009
Using inputs from the following to develop new products and services.. Market Research Partners Feedback Field Performance Studies Application Studies Outputs of R&D, IPRs, Ideas from SHs Data-Base (comprehensive / current ) Participation in Design, Development, Review, and Trials, collaboration, industry academia R&D ( Exchange of information, Consulting, Co-decision making, Co-creating ) Recognising

2005 2007

Generating ideas for new and or modification of products and services for
EXISTING & NEW MARKETS

Development process
JOINT WORKING WITH CUSTOMERS AND PARTNERS

Technology Scanning R & D Projects Studies to evaluate the impact on Business

Idea Generating Forums Experimenting Risk Funding Criteria for Selection, Evaluation and Recognition of Design Ideas/ Application

EVALUATING TECHNOLOGY IMPACT USING INNOVATION

( internal and external)

1b,1c,2a,2b,2c,2d,3b,3c,4a,4b,4d,4e,5a,5b,5e,6b,6a,7b,7a,9a

69

Criteria Requirements and Linkages

5d Products and services are produced, delivered and serviced
Planning Policy & Strategy Delivery,logistics Communication Competitors Performance Data Data-Base (comprehensive / current ) 2005 2007 2009

SALES AND MARKETING Demand/Supply interface Competition, MOR, Sale of Un-requisitioned power

5S, Visualisation, Standardisation, DWM, QA, SMED Lean 6Sigma

PRODUCTION Availability, Reliability, Grid discipline, Cost, Outages

Policy Network(delivery service) Capability Spares mgt. Failure analysis(warranty,guarantee, reliability..) SEI-CMM Levels, ISO/ TS/ TL System Standardss

AFTER SALES SERVICE Complaint handling, Technical support Rescheduling OH, Backing Up

1b,1c,2a,2b,2c,2d,3b,4a,4d,4e,5a,5b,5c,6b,6a,7b,7a,9a

70

Criteria Requirements and Linkages

5e Customer Relationships are managed and enhanced
Key Customers Ownership for contact, frequency Need Assessment & customisation Data-Base (comprehensive / current, actionable) Access/ Time/ Courtesy /ICT application Relationship management over Cr Life Cycle Recognising LT relationships/ Loyalty Dealers and Service Provider Networks Capturing( formal/ informal)/ Consolidating & Analysing Handling Warranty/Guarantee failures & Analysis Use of tools/techniques for analysis/ Learning/ Application Follow up Action/Reviews

2008 2009 2010

KNOWING & MEETING DAY TO DAY & LONG TERM CONTACT REQUIREMENTS COMPLAINTS HANDLING

Feedback through Surveys, Vendor Ratings, Complaints, Focus Groups, Customer Meets/Visits, Fairs, Customer Demos, Sales/Field Reports, Analysis of Feedback from Lost, Potential, New & Existing Customers for different customer groups and market segments. Knowing preferences & Buying behaviour . Win/Loss analysis with other competitors and organisations providing similar products. Understanding stated, unstated & anticipated Cr reqmts. Educating & Training Customers on use, maintenance and disposable Providing Help Lines, Literature Campaigns to gain attention/ reinforce Recognising responsible use

GETTING & RESPONDING TO CUSTOMER FEEDBACK

ADVISING CUSTOMERS ON THE RESPONSIBLE USE OF PRODUCTS & SERVICES 71

copyright OPEC

1b,1c,2a,2b,2c,2d,3b,4a,4d,4e,5a,5b,6b,6a,7b,7a,9a OPEC SKK

Lead and Lag Measurements

Leading measurements are drivers behind performance and provide some predictability (forward looking or Check points)

Lagging measurements are usually final outcomes that look back, such as customer satisfaction or return on investment (Strategic Objectives)

Example of Lag and Lead Indicators

(Strategic objectives):

Lag
Production no of balloon per hour Diameter of balloon

Hours used in Gym

Man physical health Key indicator (lag): Air pressure measured in kgf/ cm2

Availability of pump

No. of pumps per second Strength of Balloon

Balloon breaks / rejections)

Lead

(Check points to achieve strategic objective)

Day 2 - Group exercise no 1-Drilling down Participants to be divided in to 4 groups. Each group to pick one objective from station position report as outcome like Availability, Forced outage, Reduction of water consumption, Inventory reduction, Cost reduction, Enhancing employees satisfaction , society satisfaction etc from key result area. This selected objective outcome will be a lag parameter. Say PLF 95 is lag outcome. Now to achieve this what should be drill down lead indicators. Group can pick up one of immediate lead indicator ( instead of all) and drill it down to set of lower lead indicators as done in CHP & MGR exercise.).

Strategy and Leadership

75

Criterion 2: Strategy

Excellent organisations implement their mission and vision by developing a stakeholder focused strategy. Policies, plans, objectives, and processes are developed and deployed to deliver the strategy. Sub-criteria: 2a 2b 2c Strategy is based on understanding the needs and expectations of both stakeholders and the external environment Strategy is based on understanding of internal performance and capabilities. Strategy and supporting Policies are developed, reviewed and updated Strategy and supporting policies are communicated, implemented and monitored

2d -

76

Criteria Requirements and Linkages

Sub-criterion requirement.
Approach/Deployment/A&R addressing multiple requirements of sub-criterion Approach: who, what, method, when, how often, tools/ techniques, metrics.., link with strategy and other approaches Deployment: Level of implementation in relevant areas A&R: Measurement for efficiency & effectiveness, Learning and idea generation activities undertaken, & Improvements made and use of tools& techniques for analysis Few examples of good practices: for
2010 2008 2009

KEY ELEMENTS OF REQUIREMENTS TO BE ADDRESSED (Mandatory)

illustration only

LINKAGES WITH OTHER SUB-CRITERI0N

77

Criteria Requirements and Linkages

2a Strategy is based on the present and future needs & expectations of stakeholders.
2010
Process with key steps, outputs, ownership, time lines,and use of tools/techniques for gathering and understanding of needs and expectations Focus Groups on various SHs to gather and understand stated and implied needs and expectations over different time horizons and different segments, 6a to 8a, STEP, FIBRES Primary and Secondary data search and analysis on perceptions, needs and expectations and early indicators/drivers Use of tools to understand language/ verbal and quantitative data e.g affinity diagram, systems diagram, QFD, trends, regression analysis, Matrix diagrams.. Involvement/participation of SHs, thought leaders, experts to give their inputs Market Intelligence ( regional, national, international) Focus groups to analyse economic, legal, statutory, social, environmental issues over different time horizons e.g impact of WTO, Trade Blocs, Govt.Policies, Demographic Changes, Climate Change, Pollution norms, Political Developments

2008 2009

UNDERSTANDING CUSTOMERS, PEOPLE, PARTNERS, SOCIETY, AND INVESTORS NEEDS AND EXPECTATIONS OVER DIFFERENT TIME HORIZONS

UNDERSTANDING OPPORTUNITIES AND THREATS IN THE ENVIRONMENT OVER DIFFERENT TIME HORIZONS

1, 2, 6 to 9

78

Criteria Requirements and Linkages

2b Strategy is based on understanding internal .
Process with key steps, ownership, time lines,use of tools/techniques ( trends analysis, regression analysis, matrix diagrams..) desired outputs Focus groups on analysing internal performance(6b to 9b), Best practices, Benchmarks ( Products, Processes, Results) internal/ external, Competitors performance Analysis of core competences and capabilities Analysis of core competences and capabilities for complimentarity Interactions with existing and potential Partners in understanding their plans for capacity and capability enhancement Focus groups on analysing developments on Technology , own R&D, IPRs, Business Models, Management Approaches; Life Cycle Analysis Inputs from Formal and Informal Benchmarking Expert Inputs on Products, Services, Practices and Performance

2008 2009 2010

UNDERSTANDING STRENGTHS AND WEAKNESSES OF ORGANISATION

UNDERSTANDING STRENGTHS & WEAKNESSES OF EXISTING & POTENTIAL PARTNERS IMPACT OF NEW TECHNOLOGY & BUSINESS MODELS BENCHMARKING TO UNDERSTAND RELATIVE STRENGTHS & WEAKNESSES

1, 2c, 6b,7b, 8b, 9b

79

Criteria Requirements and Linkages

2c Strategy and supporting policies are developed,
2010 Choose Products, Customers, Competitors, Growth Vector, Competitive Advantage over different time horizons in line with Vision/ Mission and understanding of 2a, 2b. Risk Assessment for various Scenarios Follow standards on risk management BS 25999 LT/MT/ST Priorities ( Phases/ Waves of Development, Road Maps,..) Leverage Core Competences Identify ( Technology, partnerships, competences, new products) Balance all Stake Holders Interests (Customers, People, Society, Shareholders)
MAKING CHOICES IN LINE WITH VISION, MISSION AND CONCEPTS OF EXCELLENCE OVER DIFFERENT TIME HORIZONS MECHANISMS TO MANAGE STRATEGIC RISK UNDERSTAND THE KEY BUSINESS DRIVERS AND ENSURE TRIPLE BOTTOM LINE (Identify CSFs and corresponding MOU Parameter and evolve Strategies)

2008 2009

Review assumptions made

Review changes in Scenarios and their impact Evaluate Progress , Make Changes
REVIEW & UPDATE

1 to 9

80

Criteria Requirements and Linkages

2d Strategy and supporting Policies are communicated, ..
Develop SBU/Functional P&S, objectives and targets in line with organisations strategy. Set Goals for Innovation Use systematic approach / tools & techniques and people involvement to set objectives, goals, targets at various levels ( BSC, X Matrix, P,Q,D,C,S,M, KRAs) Review & refine organisation structure, framework of key processes and empower people to achieve objectives. Reporting Mechanism ( Traffic Light ) Metrics and reviews for DWM and BTs Evaluate Progress at various levels, Make Changes Communicate strategy and policies as appropriate to People, Partners, Customers.. DEFINE TARGETS, COMPARISONS WITH OTHER ORGANISATIONS FOR 6to 9 RESULT PARAMETERS BOTH IN a &b CATEGORIES IN LINE WITH MISSION AND VISION DEVELOP OBJECTIVES, PLANS, TARGETS and REPORTING MECHANISM AT VARIOUS LEVELS OF PEOPLE TO ACHIEVE BOTH LT & ST OBJECTIVES OF THE ORGANISATION 2010 2008 2009

COMMUNICATE, REVIEW, FOLLOW UP

1 to 9

81

Criterion 1: Leadership
Excellent organisations have Leaders who shape the future and make it happen, acting as role models for its values and ethics and inspiring trust at all times. They are flexible, enabling the organisation to anticipate and react in a timely manner to ensure the ongoing success of the organisation.

Sub-criteria: 1a - Leaders develop the mission, vision, values and ethics and act as role models 1b - Leaders define, monitor and drive the improvement of organisations management system and performance 1c - Leaders engage with external stakeholders. 1d - Leaders reinforce a culture of Excellence with the organisations people 1e - Leaders ensure that organisation is flexible and manages change effectively
82

Criteria Requirements and Linkages

1a Leaders develop the vision, mission, values..
Top and senior managers personally. Develop and advocate Vision, Mission, Values and Ethics and interpret for people at different levels A&R Forums for V.M.V & Improvement Initiatives. Making changes in the structure/ policies to remove bottlenecks/ make agile orgn. Actively participates as members/leaders in key improvement projects, setting targets & monitoring Mechanism for making funds and people available for improvement activities and support new/ radical ideas; and their implementation Ensuring that Values and Ethics are practiced (Code of Conduct, Ethics Counsellors, Walk the Talk, Whistle Blowing, Taking ownership, Taking Projects. ) Measuring personal leadership (individual/ team) effectiveness e.g 360 degree evaluation, Feedback from Mentors/ Coaches/ Surveys/ Meetings/.. SETTING AND COMMUNICATING DIRECTION, NOBLE GOALS AND NORMS OF BEHAVIOUR CHAMPION THE ORGANISATION VALUES LEADING BY EXAMPLE AND DEVELOP A SHARED LEADERSHIP CULTURE 2010 2008 2009

1, 2, 3

83

Criteria Requirements and Linkages

1b Leaders define, monitor, review and drive..
Top management team members as Process Sponsors/Process Owners for key processes Short & Long term plans, key deliverables are developed and widely communicated Sr Managers review the implementation of processes, policies, structures, technology, techniques etc through Steering Committees, Task Forces, CFTs, Mgt. Diagnosis Visits, Self/ External Assessment/ Audit Findings, Sr Managers regularly review and refine Metrics and Results appropriate for their business e.g Changes in MIS, Audits, Formats, BSCs, KRAs Stretch targets are set and on regulatory requirements beyond compliance level. Review progress using Short term and Long term Goals & priorities of key Stake holders Risks identified and appropriately managed across all operations DEVELOP AND IMPROVE THE MANAGEMENT SYSTEM WITH APPROPRIATE RISK ASSESSMENT AND DEVELOPMENT OF CAPABILITY FOR SUSTAINABLE BENEFITS TO SHs FACT BASED DECISION MAKING & MUPI AND GO BEYOND REGULATORY COMPLIANCE REVIEW PROGRESS BASED ON BALANCED RESULTS (LONG & SHORT TERM) & RISK ASSESSMENT 2010 2008 2009

1 to 9

84

Criteria Requirements and Linkages

1c Leaders engage with external stakeholders
Top Management develop plans, approaches to meet, communicate with key customers, suppliers, society people etc. ( Calendar/Matrices for formal & Informal meetings) to gather and understand their stated and implied needs and expectations over different time horizons in a systematic way. Championing social/ industry/ environment development cause( refer crit 8) Advocating and supporting Excellence, through JIPs, sharing good practices at various external forums Recognizing good performance and behavior of Customers and Partners. Top & Senior Managers identify key partners of strategic importance, and facilitate cultural compatibility by promoting common practices Participating and contributing in joint planning, review and improvement activities Top Managers ensure processes for corporate governance are implemented, reviewed and improved e.g GRI reporting Statutory/ Voluntary Audit Committees, . Providing relevant information to external SHs through web site, reports, providing access.. 2009 2010 DEVELOP APPROACHES TO KNOW, UNDERSTAND AND RESPOND TO EXTERNAL SHs 2008

ENGAGING WITH SHs TO GENERATE NEW IDEAS & INNOVATION IDENTIFYING PARTNERSHIPS OF STRATEGIC & OPERATIONAL IMPORTANCE TRANSPARENCY OF REPORTING TO ALL KEY STAKEHOLDERS

1, 2,4a,5b,5e 6 to 9

85

Criteria Requirements and Linkages

1d Leaders reinforce a Culture of Excellence ..
Top and Sr.Managers meet, communicate, deliberate with people on organizations Vision, Mission, Values, P & S, Plans, Objectives, Targets, thru various forums ...Formal/Informal, MBWA, Promote involvement and generation of new ideas/Innovation by Funding and regular Managers play the roles of Mentors/ Coaches/ Counselors/ Trainers and be accessible.. Sponsoring people for Competence Development and participate in Change and /or Improvement activities/projects Sr Managers create an environment of Appreciation of good performance and behavior thru timely recognition. Ensuring People policies and processes promote Equal Opportunities and reflect the needs and expectations of various people segments ( Minorities, women, Contract labour etc.). Leaders take affirmative action on the compliance / non compliances e.g sexual harassment, caste/ lingual / religious discrimination .. PROMOTE A CULTURE OF INVOLVEMENT PROMOTE CULTURE THAT SUPPORTS GENERATING NEW IDEAS & INNOVATION HELP, SUPPORT, MOTIVATE AND ENABLE PEOPLE TO SUCCEED & OD 2010 2008 2009

PROMOTE AND ENCOURAGE EQUAL OPPORTUNITIES AND DIVERSITY

1, 2,3, 6 to 9

86

Criteria Requirements and Linkages

1e Leaders ensure that organisation is flexible..
Top Management team studies and reflects to identify the opportunities / threats (SWOT, Risk Analysis) arising from changes including disruptive changes in market, technology, competition, social, legal, political and competition. Leaders consult Thought Leaders/ Experts from diverse areas: economics, social, academia on changes in scenario. Top Management team makes timely changes in its Vision, Mission, Strategy & Policies based on drivers. Top management team communicates, deliberates, advocates with all concerned stakeholders while making major changes in the organisation Changes in organisation structure, projects for growth and modernisation, launch of new businesses/ new products, development of new markets, mergers/acquisitions, changes in business model, are led by the senior management for timely initiation and completion. Resources (financial,HR) are allocated for R&D, New Products Development, Measurements, Modernisation, Competence development, Talent Management, Supplier Development, Societal Development, Brand Building. SHOW AGILITY BY MAKING CHANGES BASESD ON UNDERSTANDING OF EXTERNAL & INTERNAL DRIVERS OF ORG. CHANGE INVOLVE & SEEK COMMITMENT OF SHs RESPONDING WITH NEW WAYS OF WORKING 2008 2009 2010

ALLOCATE RESOURCES FOR LONG TERM PLANS FOR SUSTAINABLE COMPETIVENESS

1 to 9

87

Day 2 - Group exercise no 2 How to improve OFI from Criteria 1&2

Participants to be divided in to 4 groups. Each group to pick one OFI from station position report from criteria 1 or 2. Group to present genesis of OFI, and what should be done to improve this at three levels viz; at station level, RHQ level and Corporate level.

People and People Results

89

People Engagement: Key Enablers

Trusting relationships Safe and co-operative environment Good Communication and Information Flow Empowerment Performance Accountability Training and Career Development Effective Recognition and Reward Systems Equal Opportunity and Fair Treatment Family Friendliness People feel engaged when they find personal meaning and motivation in their work and when they receive positive interpersonal and workplace support

90

Criterion 3: People
Excellent organisations value their people and create a culture that allows the mutually beneficial achievement of organisational and personal goals. They develop the capabilities of their people and promote fairness and equality. They care for, communicate, reward and recognise, in a way that motivates people, builds commitment and enables them to use their skills and knowledge for the benefit of the organisation. Sub-criteria: 3a People plans support the organisational strategy 3b Peoples knowledge and capabilities are developed 3c People are aligned, involved and empowered

3d People communicate effectively throughout the organisation

3e People are rewarded, recognised and cared for
91

Criteria Requirements and Linkages

3a People plans support the organisations strategy
2010 High Level CFT to ensure alignment of HR Plans with business strategy and plans, and review Current&Future Method Restructuring, De-layering, Functional, managerial,leadership Involvement of People, JCCs, Focus Groups to business, problem solving provide inputs for HR Strategy/ HR Policy/ Action PlansData-Base (comprehensive / current ) Manpower Planning, Outsourcing, Sub-Contracting, Mergers/ Acquisition On the Job Class room Leadership Development, Succession Planning Mentoring Job Rotation Develop Career Paths, Mobility Coaching Gender, socio economic, religion, nationality, . Understanding people perceptions through Surveys, Coverage Sample Size Work out Sessions, Town Halls, Structured Methods Segmentation Meetings, Plant Visits Exit Interviews,Head Hunters, Focus Groups,.. Appraisal Feedback Sharing Segmented analysis and Improvements, Consulting Co-decision making Involvement of employees in analysis and suggestions for improvements Co-creating Recognising
DEVELOPMENT & ALIGNMENT OF HR POLICIES,STRATEGIES, STRUCTURE & PLANS WITH BUSINESS STRATEGY & PROCESSES

2008 2009

RECRUITMENT,CAREER DEVELOPMENT AND SUCCESSION PLANNING FAIRNESS & EQUAL OPPORTUNITIES

FEEDBACK FOR IMPROVEMENT

1b,1d,2a,2b,2c,2d,3b,4a,4d,4e,5a, 7b,7a,9a,9b

92

Criteria Requirements and Linkages

3b People knowledge and capabilities are developed
2009 Skills Matrix, Competence Mapping- Current & Future Functional, managerial, leadership, business, problem solving, teams kills, innovation , Job descriptions ,analysis ,review, revisions Data-Base (comprehensive / current ) Methods ,Tools & Techniqs:.e.g; Hayes Method, HR Audit . Training need identification. Short/Long range training plans. . Class room Training On the Job Training Mentoring/ Coaching Induction Trg., Buddies Job Rotation/ Multi Skilling Trg. Plan,budget T&D Facilities, Competence Dev. Centres Right positioning in line with competences career path and objectives set Appraisal Feedback ( PMS) Qtr /HY/ Y Counselling/ Coaching/ Mentoring for mobility & employability Chat sessions with managers 2010 IDENTIFICATION of GAP IN KNOWLEDGE AND SKILLS PRESENT/ FUTURE 2008

DEVELOPMENT & EMPOWERMENT

ALIGNMENT & REVIEW

APPRAISING & HELPING

1b,1d,2a,2b,2c,2d,3b,4a,4d,4e,5a,5b,7b,7a,9a,9b

93

Criteria Requirements and Linkages

3c People are aligned, involved and empowered
2010 Structured Meetings, Shift, daily,weekly Suggestions Focus Groups/JCCs Internal conferences, Seminars, Town Halls, Ceremonies, COPs Break out sessions with Sr Managers Kaizens Small Group Activity CFTs Process Improvement Teams FORUMS FOR INVOLVEMENT (COMMUNICATION, CONSULTATION) 2008 2009

CO-PROBLEM SOLVING

Self Directed Teams Objective setting My Machine, Line, Area, Zone, Customer

CO- DECISION MAKING CREATE CULTURE OF ENTRPRENEURSHIP , CO- CREATING

Patent sharing Blue Sky Projects . Shadow Management Team . Developing Managers to facilitate above

1b,1d,1e,2a,2b,2c,2d,3a,3b,3c,4d,4e,5a,5d,7b,7a,9a,9b

94

Criteria Requirements and Linkages

3d People communicate effectively throughout the organisation
2010 Personal, Organisation, Business, Professional communication & Information needs for different segments of employees Involvement of people in identification of needs e.g TUs, Associations, Opinion Leaders, 5W 1H defined for Communication Communication Matrix UNDERSTAND COMMUNICATION NEEDS 2008 2009

STRATEGY, POLICY, ACTION PLANS FOR COMMUNICATION

Print/ Face to Face/ Intra net / Films/ Documentation / Tours / Lectures / Sessions / Melas/ COPs Chat sessions with managers Grievance Handling Channels . Structured meetings with TU/Association etc. Work out sessions, Town halls . Knowledge Management portals

CHANNELS OF COMMUNICATION ( TOP, DOWN, HORIZONTAL) SHARING BEST PRACTICES

1a,1b,1d,1e,2a,2b,2c,2d,3a,3b,3c,3d,4e,5a,5b,7b,7a,9a,9b

95

Criteria Requirements and Linkages

3e People are rewarded, recognised and cared for
2010 Compensation package, Fixed / Variable Pay, Current&Future Method ESOPs Functional, managerial,leadership VRS, Re-habilitation, solving business, problem Data-Base (comprehensive / current ) Monetary and Non-monetary recognitions at various levels, performance appraisal, criteria for Class room On the Job recognition, timeliness Job Rotation of recognition, Mentoring involvement of various levels in recognizing, Coaching variety of items for recognition Safe Working conditions, ergonomics, ambience, Coverage Sample Size facilities provided topeople on health, recreation facilities, welfare, Segmentation Methods Flexi timing, sabbatical, working from home, study leave, Feedback Sharing Appraisal Promoting Cultural & Co-decision making Consulting Social activities Policies/ Actions flexible to address diversity needs Co-creating Recognising People given time for social work, Part of appraisal and Leadership attributes,
ALIGNMENT OF REMUNERATION, REDUNDANCY, REDEPLOYMENT & OTHER TERMS OF EMPLOYMENT WITH POLICY & STRATEGY

2008 2009

RECOGNITION TO PROMOTE AND SUSTAIN IMPROVEMENT, INVOLVEMENT, VALUES..

SAFETY, HEALTH, WORK ENVIRONMENT, WELFARE ACTIVITIES, SERVICE QUALITY & WORK LIFE BALANCE

ENCOURAGING SOCIAL RESPONSIBILITY, CULTURAL DIVERSITY

1b,1d,2a,2b,2c,2d,3b,4a,4d,4e,5a,5b,7b,7a,9a,9b
copyright OPEC

96

Criterion 7: People Results

Sub-criteria 7a - Perception Measures- These measures are the peoples perception of the organization.( Lag indicators). They may be obtained from a number of sources, including surveys, focus groups, interviews and structured appraisals. Depending on the purpose of the organisation, measures may focus on: Satisfaction, involvement and engagement Pride and fulfillment Leadership and management Target setting, competency, and performance management Competency, training and career development Effective communications Working conditions 7b - Performance Indicators - These measures are the internal measures ones used by the organisation in order to monitor, understand, predict and improve the performance of the organisations people (Levels of Achievements, Satisfaction ,Motivation & Involvement) and to predict their perceptions.( Lead Indicators) Depending on the purpose of the organization measures may focus on: Involvement and engagement Target setting, Competency and performance Leadership Performance Training and career development 97 Internal communication

Day 2 - Group exercise no 3 How to improve OFI from Criteria 3&7

Participants to be divided in to 4 groups. Each group to pick one OFI from station position report from criteria 3 or 7. Group to present genesis of OFI, and what should be done to improve this at three levels viz; at station level, RHQ level and Corporate level.

DAY 3

Criterion 6: Customer Results

Sub-criteria 6a Perception Measures - These measures are of the customers perceptions of the organisation (obtained, for example, from customer surveys, focus groups, vendor ratings, compliments and complaints). Lag indicators Depending on the purpose of the organization measures may focus on: 6b Reputation and Image Products and service value Product and service delivery Customer service, relationship and Technical support Customer loyalty and engagement

Performance Indicators - These measures are the internal ones used by the organisation in order to monitor, understand, predict and improve the performance of the organisation and to predict perceptions of its external customers. ( Lead Indicators) Depending on the purpose of the organization measures may focus on: Products and services delivery Customer service, relationships and Technical support Sales and after sales support: Complaints and compliments External recognition

100

Criterion 8: Society Results

Sub-criteria 8a - Perception Measures- This is societys perception of the organisation.( Lag Indicators). This may be obtained from a number of sources, including surveys, reports, press articles, public meetings, NGOs, public representatives, and governmental authorities. Depending on the purpose of the organisation, measures may focus on: Environmental impact Ambience,Safety & Sustainability of resources Image and Reputation-Responsible Orgn. Societal Impact- Health, Education, Infrastructure devt. Etc. Workplace Impact Awards and Media Coverage 8b - Performance Indicators - These are the internal measures used by the organisation in order to monitor, understand, predict and improve the performance of the organisations people and to predict their perceptions. (Lead Indicators) Depending on the purpose of the organization measures may focus on: Environmental Performance Regulatory and Governance compliance Societal Performance Health and Safety Performance Responsible Sourcing and Procurement Performance
101

Day 3 - Group exercise no 1 How to improve OFI from Criteria 6 & 8

Participants to be divided in to 4 groups. Each group to pick one OFI from station position report from criteria 6 or 8. Group to present genesis of OFI, and what should be done to improve this at three levels viz; at station level, RHQ level and Corporate level.

Criterion 4 - Partnerships and Resources

Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support strategy and policies and the effective operation of processes. They ensure that they effectively manage their environment and societal impact. Sub-Criteria: 4a 4b 4c 4d 4e
1998 EFQM 61

Partners and suppliers are managed for sustainable benefit Finances are managed to secure sustained success Buildings, equipment, materials and natural resources are managed in a sustainable way Technology is managed to support delivery of the strategy Information and knowledge are managed to support effective decision making and to build the organisations capability

103

Criteria Requirements and Linkages

4a External partnerships are managed for..
Policy/guidelines for partnering, out sourcing ( Alignment with Values, Goals, Amenable for Partnering) Network to identify potential partners 2010 STRATEGY/POLICY/PLANS Search and identify Key Partners ENHANCING CAPABILITIES Leverage Competencies, Synergies, & Seamless Processes, Sharing of Resources WORKING TOGETHER Building Relationships 2008 2009

Identify Key Strategic Partners for LT Structure/resources Action Plans/ Metrics Training Eliminating NVA Sharing best practices Counselling on Technology, Process, QMS, EMS,.. Use of facilities e.g measurement and testing Equity participation. Access to Best Technology Structured Meetings, Feedback on Performance EDI/Intranet Mutual visits of key people to sites Focus Groups Joint Consultative Committees Participation in Strategic/Operational Planninn Participation in Performance Reviews Joint improvement teams Supplier/Dealer development teams Joint new product / business development Recognition/Benefit Sharing

1b,1c,2a,2c,2d,3a,3b,4a,4b,4c,4d,4e,5, 9a,9b

104

Levels of Partner Relationship

Co-creating Co-decision making Consulting Information sharing In-touch

105

Relationship Hierarchy

High

Low

Creation

Team Work
Impact on Business Number of Relationships

Sharing

Transaction Low High

106

Partnering Relationships

Organisation

Trust and Mutual Benefit

Partners

Financial Knowledge

Information
Asset Mission, Vision, Values

107

Criteria Requirements and Linkages

4b Finances are managed to secure sustained success
Policy/ Guidelines/ Structure/ Resources Strategic partnering Key Partners Financial Planning, Budgeting & other Processes Action Plans/ Metrics Auditing Investor communication Accountability/ Transparency/ Competence and Compensation of Directors Costing for control and improvement MIS Publication of Accounts Processes/Tools/Techniques/Expertise to evaluate investments/ divestments and Learning Exchange Rate Fluctuation Tax/ Interest Rate variations Liability assessment Insurance coverage for various risks 2010 STRATEGY/ POLICY/ PROCESSES SETTING CORE GOVERNANCE PROCESSES REPORTING INTERNAL/EXTERNAL EVALUATING INVESTMENT/ DIVESTMENT METHODOLOGIES FOR MANAGING FINANCIAL RISKS AT ALL LEVELS 2008 2009

1b,1c,2a,2b,2c,2d,3a,3b,4a,4b,4c,4d,4e,5a,5b, 9a,9b

108

Criteria Requirements and Linkages

4c Buildings, equipment, materials and natu..
P&S for Maintenance of Plant & machinery . Priority area in short/medium/long term plan Action Plans with ownership of Sr Managers Total Productive Maintenance ERP Lean Manufacturing Inventory Mgt. Manage Physical Security of assets Eco considerations from Acquisition to Disposal ISO 14000,18000, 5S, Key Metrics in PMS Green Supply Chain Exceeding Statutory requirements Ergonomics/ Safe work environment 2010 STRATEGY/POLICY/PLANS 2008 2009

OPTIMISE THE USE, MANAGE LIFE CYCLE

MEASURE & MANAGE LOCAL & GLOBAL IMPACT (SHE) BEYOND STATUTORY COMPLIANCE

Reduce/Reuse/Recycle Targets for improvement Water/ Energy/ Land / Material conservation

MININMISE THE USE OF RESOURCES

1b,1c,2b,2c,2d,3a,3b,3e,4a,4b,4d,4e,5, 9a,9b

109

Hierarchy of Waste Management

Most Favoured

Prevention Minimise

Reuse
Recycling Energy Recovery Least Favoured Disposal
110

Criteria Requirements and Linkages

4d Technology is managed to support the delivery..
Policy, Strategy and Action Plans for Technology Upgradation/Modernization with ownership and involvement of Senior leaders Priority area in short/medium/long term plan Technology Scanning, Evaluation and Selection process Involvement of internal and external experts Technology Up-gradation, Alternate Technology, IT Study on impact of technology changes on business, organisation capability and environment Structure/ Skills/ People/ System to support technology Using IT in Business/Product/Support Processes Project management for setting new technology

2008 2009 2010

ALIGNED STRATEGY/POLICY/PLANS APPROPRIATE TECHNOLOGY

EFFECTIVE DEPLOYMENT ACROSS THE ORGANISATION

(ALL PROCESSES)

Environmental and Society Friendly ( 3Rs,water/energy/land/ air/ material) New/ Cutting Edge technology Access to knowledge& information , S/W for Design/Modeling Faster Evaluation, Trials of prototypes.

SUPPORTS SUSTAINABLE GROWTH AND INNOVATION & CREATIVITY

1b,1c,1e,2b,2c,2d,3a,3b,4a,4b,4c,4e,5, 9a,9b

111

Criteria Requirements and Linkages

4e Information and knowledge are managed ..
Policy & Strategy, Action Plans with ownership and involvement of Senior leaders in the KM Priority area in short/medium/long term plan Networks to identify opportunities (Experts, Sources of Data/ Benchmarks, Academia, Research Labs, Thought Leaders..- both internal and external) Collate, & Convert data to information to knowledge IT infrastructure to provide access as appropriate
All levels/functions internally All external Stakeholders

2008 2009 2010

ALIGNED STRATEGY/POLICY/PLANS

ACQUIRE/ STRUCTURE/ PROVIDE & ASSURE SECURITY,INTEGRITY, VALIDITY

System Standards for IT security User Friendly, accurate, relevant & timely Info. Reward and recognition for giving/using Info .on Material, products, technology, standards, targets, customers, competition, practices, processes, IPR scanning/filing process for products/processes

EXPAND CREATION AND APPLICATION OF KNOWLEDGE FOR DECISION MAKING & INNOVATION ACROSS ORGANISATION IPR MANAGEMENT

1b,2a,2b,2c,2d,3b,3d,4a,4c,4d, 5, 9a,9b

112

Day 3 - Group exercise no 2 How to improve OFI from Criteria-4

Participants to be divided in to 4 groups. Each group to pick one OFI from station position report from criteria 4. Group to present genesis of OFI, and what should be done to improve this at three levels viz; at station level, RHQ level and Corporate level.

Day 3 - Group exercise no 3 Identifying Functional level parameters to achieve station level objective

Participants to be divided in to 4 groups. Each group to pick up one key parameters from 6, 7, 8 & 9 each from station level position report and show what shall be functional level parameter to be tracked [in Result fashion as described during day 1]. For example Reliability, Cost of generation, Reduction of water consumption, Training effectiveness, Overhauling preparedness index, Safety, IR health could be station level parameters. Now what each function say Operation, Maintenance, Chemistry, HR, C&M, F&A will track to compliment these parameters.

Result Enabler Example

Objective Accident free station

To achieve this objective what we should do in enablers and what we should measure in results??

Accident free station

Leadership
Vision Tangible Meaning Managing the Safety performance Interaction with partners, customers, society, employees. Enabling employee to give creative input on safety. Ensuring flexibility to change

Criteria 1

Fix Frequency Rate, Severity Rate, Accident Rate, Fires Safety Policy, Manage by OHSAS, Safety committees Scheduled meetings with SHs, Identify needs, JIPs with external SHs , Suggestions, Reward, Recognition New trends & Norms-Training, Communication on new safety policy

Accident free station Criteria 2 & 3

Planning & Strategy
Consider Present & Future safety needs. Performance Indicators trends based on past data / record of safety Review forums for safety and analysis thereof. Safety Strategies communicated to all stakeholders on safety.

Human Resources
Safety organization, Safety plans. Skills and competencies required (knowledge Part) Involving peopleDepartmental Safety committees, Dialogue - Conference, Workshop, Awareness Suggestions / Proactive Behaviors Rewards / Recognition

Accident free station Criteria 4 & 5

Partnership
Long term Partnerships for supply of safety equipments Budget Financial Resources for safety Develop safety plans Zone wise / Building wise / Equipment wise Identify and acquire latest Technology on Safety Automation & IT enablement for safe operation.

Processes
Safety process. Lead / lag indicators for safety. Improvement in Process based on performance. Innovative products used for safety. Look at how Safety is delivered & managed Internal &External customer satisfaction on safety records.

Result Parameters
Frequency Rate

Severity Rate

Accident Rate

Gen Loss

Property Damages

Insurance Claims

IR Health of Station

Reportable / Non reportable Accident

Awards / Accolades

Reward / Recog to Emp

Hazards Identification.

Special trg reqd

Mock Drill

Near Misses

Safety videos for each areas

Frequency & Timeliness of Audit

5 S
% people using PPEs

Visual Management

Closure of Audit Point Quality of NCs in OHSAS Audit.

On job safety tips

Availability of PPEs

Case Dissemination

No. of Suggestions Implemented Best Practices on Safety for that area in other Stations

DMP

Expenditure / Allocation on Safety heads

Day 3 , Group exercise no - 4

Result Enabler Group Exercise based on safety example.

Each group to select one objective like Accident free station and present result and Enabler parameters. (Eg. Availability, Forced outage, Reduction of water consumption, Inventory reduction, Cost reduction, Enhancing employees satisfaction , society satisfaction etc from key result area. )