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Leveraging Organization Culture

to achieve
Outstanding Results
Tata Steel
Alok Krishna
Chief (TQM, BPE and CQA)

Dec 19, 2014

Content

Industry Evolution & TSLs Competitive Edge

TQM: Key Enabler in Building Organizational Culture

Effects of Culture Building and Challenges Ahead

Content

Industry Evolution & TSLs Competitive Edge

TQM: Key Enabler in Building Organizational Culture

Effects of Culture Building and Challenges Ahead

1. Tata Steel Value Chain

Iron Making

Steel Making

Rolling & further


processing

Customers

Raw Materials

Raw Material Mining

7 Types of RM

Heterogeneity

1 Hot Metal

Homogenization

291 Steel grades

955 Distinct Products

Customization

Enhanced complexity due to geographical spread and diverse downstream


processes
Systems & Process Approach and Responsiveness
Tata Steel way to stay ahead of competition.
Slide 3/13

Every morning in Africa, a gazelle wakes up knowing it must run faster


than the fastest lion or be killed.
Every morning a lion wakes up knowing it must outrun the slowest
gazelle or starve to death.
It doesnt matter if you are a lion or a gazelle, when the sun comes up,
you better be running!

1. Evolution of Steel Industry & TSLs response:1901 & beyond


Industry
Evolution

Closed
Economy

Start of
Liberalization

Value for
Services

Emerging India
Story

Emerging new
economies
Learning
Organization

Strategic
Partner
Collaborative
Working
Transactional

Trigger for
Competitive Edge
Control era

Production based
on allocation
Initiation of
Quality Systems

Realizing value of
Brands

Cost Focus (TOP)

Technological
collaboration

Start of Customer
Orientation

Supply chain
strengthening

Build Decisive
Competitive edge
thru new product &

service offerings
Focus on Auto &
& Const. segments

Moving to Brands
Technology upgrade

Tata Steels
Response

2001 - 2005

1992 - 2001

1901 - 1992

2005 - 2010

2011 onwards

Define new market


segments & create

value propositions
ECVM

Knowledge based
customer relationship relationship with

CSTs stronger

Focused improvement
through TQM

key customers EVI,


VAVE, VIUs

approach

TBEM for measuring


business effectiveness
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1. Stakeholder Value Creation through this Journey


Building Customer Partnerships
SSWL

Branding Steel

People, Community
MD Online
Centre for
Excellence

Polytechnic
at JSR

Whistle
Blower Policy
Infrastructure
to promote
sports
Civil Society Award for
CSR from UNAIDS 2006

Period

1995

2000

2004

Only co. from Asia


among 12 founder
members

2011
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1. Implementation of Values across the Organization


at the Core of this Journey
Our Values are Integrity, Understanding, Excellence, Unity, Responsibility
All employees have committed themselves to the Tata Code of Conduct (TCoC).

Impetus is given to ethical behavior and prevention of sexual harassment at


workplace through deployment of policies such as Whistle Blower Protection
Policy and Prevention of Sexual Harassment at Workplace Policy.
MD addresses all employees through videoconferencing & teleconferencing
every month to communicate leadership direction as well as provide opportunity
to shop floor employees to share there concern, suggestion etc.
Embedding TQM in our DNA doing things the right way!

Building a strong organization culture has been the fundamental differentiator at


Tata Steel!

Content

Industry Evolution & TSLs Competitive Edge

TQM: Key Enabler in Building Organizational Culture

Effects of Culture Building and Challenges Ahead

2. Improvement Orientation: From Initiatives to Building a


Culture
ASPIRE T3
(TQM,TOC,
Technology
)

TQM

EVA
+

TOC

TOP

Small
Group
Activities

ISO
9001

QIP
QC

Value
Engg.

AQUIP

TPM

Benchmarking

KVHS

6
KM

Improvement a Culture

Improvement

Suggestion
Management

CQA

a Continual Journey

Improvement an Initiative

JN Tata TQA
Mid 90s

1901

1991

TBEM

Deming

1996

2005

2012 &
beyond

QIP: Quality Improvement Projects, QC: Quality Circles, AQUIP: Annual Quality Improvement Plans
TPM: Total Productive Maintenance, KM: Knowledge Management, TOP: Total Operative Performance
TOC: Theory of Constraint, TQM: Total Quality Management, CQA: Corporate Quality Assurance,
KVHS: Kar Vijay Har Shikhar
Business Excellence & Assessment Approach

Slide 5/13

2. Key Tenets of Organizational Culture

Clear
Milestones
(Tasks &
Timelines)

Improvement
Orientation

Organizational
Culture

Repeatability
of Process

Discipline

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2. TQM Vehicles for Alignment and Integration


Policy Management

Daily Management

SGA and MASS+

Enables executives make


choices on what
organization will do and
what it will not do

Enables role clarity of


supervisors and managers
to provide products and
services as designed.

Promotes employee
involvement in continual
improvements.

Pulls the entire


organization together
around a single game plan
for execution

Helps manage variability


to enhance productivity &
reduce waste

Promotes collaboration to
address pain areas from
shop floors

Brings focus on activities


to maintain processes

Fosters transparent
learning and sharing
through team based
activities

Draws broad outline on


where resources will get
allocated

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2. Driving Business Excellence - A Structured Approach


PDCA approach to continual
improvements

Policy Management

RVM

Excellence

Diversity of mind-set to
accelerate breakthroughs
and improvements

Task & Timeline

Focused Initiatives for step change..


Theory of Constraints for Supply
Chain Excellence
Close cross functional collaboration
through KVHS
..

Repeatability of process (Standardization)

Daily Management

Total Employee Involvement

SGA, MASS+

Capability Building

Education & Training

Time
Senior & Middle Management

Shop Floor initiatives

Across organization

Slide 6/13

2. Spiralling People Vitality through Learning and Sharing


Multiple Learning Channels:
On Job Training (OJT)

Knowledge Manthan

Outbound adventure
programs

Web based learning

Short term project

Window on the World

Involvement of trainees

Blended learning

e - learning

Knowledge Management

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Content

Industry Evolution & TSLs Competitive Edge

TQM: Key Enabler in Building Organizational Culture

Effects of Culture Building and Challenges Ahead

15

3. Recognitions that mean the World to us

..1/2

Tata Steel bags the 2013


CII-ITC Sustainability Award
Tata Steel awarded the BML Munjal Award
for Excellence in Business through
Learning and Development, 2014

Tata Steel - Indias


Best Performing Integrated Steel Plant,
awarded the Prime Ministers Trophy 8 times
Tata Steel acknowledged as Best
Managed Board in India, 2013

Tata Steel wins the


Deming Grand Prize in 2012

Tata Steel awarded the


Excellence and Health
certificate by Worldsteel
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3. However, TQM is a Marathon and not a Sprint


Challenges Ahead
1. Taking TQM to the Grass Root level: management union participation for a
larger organizational cause and for nation building.
2. Building Efficient Change Management Process
3. Leveraging Big Data in the implementation of TQM
4. Encouraging Technological Development and enhanced Customer
Centricity through use of TQM.

5. Deployment of TQM to raise the Quality of Life of people in the areas we


operate in.
it is a journey which begins but never ends
a journey in pursuit of excellence!

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Everything remaining same,


the team with the better culture will win!!
Tata Steel among
Worlds Most Ethical
companies
by Ethisphere Institute

PMs Trophy

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