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 & Conclusion
1

Vision & Mission

An organizations vision statement should reflect the organizations

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.

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.

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.

Values & Culture

Core values are the deeply ingrained principles that

guide all of a companys 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

Tata Sons- Core Values

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

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.
7

Organizational Development

BSC driven Strategic Realignment

Improve Shareholding Value
Shareholder Value
ROCE
Productivity Strategy

Revenue Growth Strategy

Financial Perspective
Value from
New Products
and Customers

Increase
Customer
Value

Improve Cost
Structure

Improve Asset
Utilization

New Revenue Sources

Customer Profitability

Cost per Unit

Asset Utilization

Customer
Perspective:
Customer Value
Proposition

Product Leadership
Customer Intimacy
Operational Excellence

Internal Perspective
Innovate
(Processes that
create new
Products and
Services)

Learning & Growth

Perspective

Employee
Competencies

Increase Customer
Value
(Customer
Management
Processes)

Achieve
Operational
Excellence
(Operations &
Logistics Processes)

Technology

Be a Good
Neighbour
(Regulatory &
Environmental
Processes)

Corporate
Culture

Flipkart: Customer Delight

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!!

10

Revenue
Indigo
Airlines:
Value to the customer

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.

11

Revenue
Ola Cabs: Solving a problem

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

12

Revenue & Customers

Revenue Growth

Volume

Acquire New
Customers

High Value
potential
customers
Profitable
products
Effective
Advertising &
sales channels

Price Realization

Retain and Grow

Current
Customers

Client
relationship
management
Account
management
Cross selling

Leverage IncomeGenerating Assets

Developing IP
Return on treasury
funds
Divesting nonperforming assets.

Strengthen Pricing

Price insensitive
customers
Rationalizing
product portfolio
Differentiated
pricing

13

Growth Strategy

Productivity Strategy
Long-Term Shareholder
Value

Financial
Perspective

Improve Sales
Productivity

Enhance
Customer Value

Expand Revenue
Opportunities
Customer Value Proposition

Customer
Perspective

Price

Quality

Availabili
ty

Function
ality

Selection

Service

Product/Service Attributes

Internal
Perspective

Learning and
Growth
Perspective

Customer Selection

Organization
Capital

Relationship

Customer Acquisition

Customer Retention

Brand

Image
Customer Growth

Understand segments
Screen unprofitable
customers
Target high-value
customers
Manage the brand

Communicate value
proposition
Customize mass
marketing
Acquire/convert leads
Develop dealer networks

Premium customer
service
Sole source
partnerships
Service excellence
Lifetime customers

Cross-selling
Solution selling
Partnering/integrated
management
Customer education

Market research
Profitability analysis
Market communication

Consultative sales skills

Customer/industry
knowledge
Product line knowledge

Customer database
Customer analytics
E-polling/sampling
Profitability analysis

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

Customer-focused
culture
Personal goal alignment
Best-practice sharing

Customer-focused
culture
Personal goal alignment
Best-practice sharing

Human Capital
Information
Capital

Partners
hip

Source: Strategy Maps by Kaplan Norton

Call centre protocols

Product line knowledge
Problem resolution
Customer feedback

Customer interaction
centre
Problem tracking system
Order management
system

Customer information
feedback
Portfolio planning
models
Integrated order
management
Customer-focused
culture
Personal goal alignment
14
Best-practice sharing

Revenue
Customer Acquisition
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
15

Assets Efficiency
Asset Efficiency

Property, Plant &

Equipment (PP&E)

Inventory

Receivables &
Payables

Improve PP&E
Efficiency

Improve
Inventory
Efficiency

Improve
Receivables &
Payables
Efficiency

16

Operational Efficiencies
Operating Margin (after taxes)

Selling, General &

Administrative
(SG&A)

Improve
Customer
Interaction
Efficiency

Improve
Corporate/
Shared services
Efficiency

Cost of Goods
Sold (COGS)

Improve
Development &
Production
Efficiency

Improve Logistics
& Service
Provision
Efficiency

17

Governance
Governance

Company
Strengths

Improve
Management &
Governance
Effectiveness

External Factors

Improve Execution
Capabilities

Partnerships &
Collaborations
Agility & Flexibility
Development of
strategic assets

18

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

Financial Perspective Strategy

If we succeed, how will we
look to our shareholders?
Customer Perspective
To achieve our vision, how
must we look to our
customers?
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

Execution

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:

Phase-1
Preparation &
Approval
Phase VI

Phase II

Innovate,
Improve &
Adapt

Strategic
Communication

Phase V

Phase III

Assessment &
Review

Cascading &
Alignment
Phase IV
ImplementationExecution

20

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 organizations unique capabilities
2. Develop programs to upscale core capabilities
3. Develop partnerships
4. 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 division
9. Drive towards parallel realignment
10. Understand that changing the hearts and mind of staff is challenging and requires
time and effort.
21

Execution Framework- In action

Financial:
Develop Performance Metrics
Manage Burn Rate
Reduce Risk
Accounting & Audits

Customers:
Product Positioning & Branding
Market Support
Channels to Market
Channels Support
Customer Support & Training

Operations:
Administration
Marketing & Sales
Operations
Business Process Mapping &
Optimization
Inventory & Manufacturing
Credit & Collections
Supply Chain

Employees:
Develop Corporate Culture
(values, relationships, behaviour)
Service mapping to improve
employee satisfaction
Salary, Benefits & Retention
Communications
Development & Training
22

Strategy Map

Improve Shareholding Value

Shareholder Value
ROCE
Productivity Strategy

Revenue Growth Strategy

Financial Perspective
Value from
New Products
and Customers

Increase
Customer
Value

Improve Cost
Structure

Improve Asset
Utilization

New Revenue Sources

Customer Profitability

Cost per Unit

Asset Utilization

Customer
Perspective:
Customer Value
Proposition

Product Leadership
Customer Intimacy
Operational Excellence

Internal Perspective
Innovate
(Processes that
create new
Products and
Services)

Learning & Growth

Perspective

Employee
Competencies

Increase Customer
Value
(Customer
Management
Processes)

Achieve
Operational
Excellence
(Operations &
Logistics Processes)

Technology

Be a Good
Neighbour
(Regulatory &
Environmental
Processes)

Corporate
Culture

23

Questions/Feedback:
Suparna.Dua@knavcpa.com
+91 97696 57090

24

Mumbai
| 101 RNA Azzure, Service Road, Bandra E, Mumbai 400051
| T: +91 22 2647 0044
F: +91 22 2647 0033
Atlanta
| 3883 Rogers Bridge Road, Suite 601, Duluth, GA 30097
| T: +1 678 584 1200 F: +1 770 676 6082
London
| Kajaine House, 57-67 High Street, Edgware, Middlesex, HA8 7DD | T: +44 20 3617 6200
F: +44 20 8732 4555
Lyon | 74 Rue Maurice Flandin 69003 Lyon
| T: +334 781 82694 F: +334 721 35860
Geneva
| Rue du Rhone 114, 1204 Geneva
| T: +412 44 66 77 27 F: +412 44 66 92 82
Amsterdam | WTC Amsterdam, Strawinskylaan 923, 1077XX Amsterdam
| T: +312 066 44 054 F: +312 066 44 970
Toronto
| 55 York Street, Suite 401, Toronto, Ontario, M5J 1R7
| T: +1 416 229 1411 F: +1 416 229 1711
| T: +65 6222 2410 F: +65 6226 2004
Singapore | 101, Cecil Street, 24-10 Tong Eng Building, Singapore, 069533
For any enquiries, please contact:
KNAVs International Practice Partner: Khozema Anajwalla khozema.anajwalla@knavcpa.com Mobile: +91 98201 99196
Offices: INDIA|USA |UK |FRANCE |SWITZERLAND |NETHERLANDS |CANADA |SINGAPORE Website: www.knavcpa.com
25