Lalit Ratnani

Although the end objective of both OKR & Hoshin Kanri is to provide and effective framework for setting and achieving goals, the way the two go about with it is different. OKR: OKR as a goal setting framework has enabled company’s like Intel & Google to become industry leaders. OKR as the name suggests utilizes objectives and the associated Key Results to determine the progress the company is making towards achieving its goals. Achievement of objectives through specific and measurable actions is the key deliverable of OKR. Most often than not, the company leadership sets the company OKR and there is some flexibility for the staff and managers as to how to go about with achieving their goals. Typically, every quarter, the key results are utilized as milestones to track the progress being made towards the goal and whether any adjustment is required both in the goal or the way the execution is being handled. Meeting the key results is a binary deliverable and there is no scope for an in between result. Hoshin Kanri: Quite often than not, an employee is not aware as to how his/her personal goals align with those of the organization. Hoshin Kanri tries to bridge the gap by ensuring that a company's strategic goals drive progress and action at every level within that company. This typically starts with the top management defining the future state and mission of the company from a long term perspective. To achieve this long term goal, medium & short term goals are set along with the other employees and managers. This method aligns an organization’s long term goals to its day to day activities to ensure everyone is working towards the same objectives. Typically,, Hoshin Kanri is a process that starts with establishing the future state , define the objectives to achieve the future state, converting the long term objectives into yearly objectives, executing them and reviewing the progress on a regular basis. Thanks.

Although modelling and simulation are used interchangeably, they both have unique characteristic and sometimes there is some overlap between the two. Simply put simulation is run on a model to predict future performance. The term modelling itself refers to the process of putting together the desired output(Y), the set of inputs (Xs) and the function that relates the Y to the Xs. Once the model is put in place, simulation is run on the model by using data sets for each of the Xs and also utilizing any decision points that may be applicable. The simulation tool uses the data sets for the Xs along with the function that relates the Xs to the output Y. In terms of similarities , sometimes simulation itself is referred to as Modelling with the understanding that post creation of the model, modelling tools will help predict the response against the data sets for the different Xs. In terms of uses cases, there are quite a few that come to mind. Tools like Crystal ball can be utilized to provide the optimal settings for the Xs so as to achieve the desired output (Y). Improvement in throughput, reaching desired TAT , optimal project selection to meet budget & cost constraints, optimal sigma setting of component/process dimensions to meet EVA targets in the manufacturing domain are some of the use cases where modelling and simulation go hand in hand. Typically, post gathering the data for the Xs, the very first step from a simulation standpoint is to fit the collected data for the Xs against a statistical distribution. This is followed by defining decision point if any for selection of the Xs and finally with providing the desired optimal value of Y to the simulation tool. The simulation tool then runs all the possible combinations of the Xs to identify the optimal values of the Xs that will provide the desired value of Y. This helps the user understand from a project selection standpoint as to what values of Xs are required to meet the desired output (Y). Once the desired values of the Xs are achieved by way of process improvement projects, achieving the desired Y becomes realistic. Regards, Lalit

Blue Ocean Strategy as the name suggests is a strategy with an underlying principle of 'out of the box' thinking. The vast and open expanses of blue ocean signify the potential of doing something innovative and different rather than competing in an already crowded industry . Companies that have successfully adopted Blue Ocean strategy have created new industries. By doing so, they have managed to keep the balance between cost, value and quality and introduce disruptive products and services. Due to the unique nature of the products/services on offer, these companies have created a brand name and unparalleled reputation in the marketplace. Although Blue Ocean strategy and Lean Six Sigma focus on value creation there are both similarities and differences between the two. In terms of similarities, both blue ocean strategy and Lean Six Sigma focus on utilizing innovative thinking to create demand and build reputation. Lean Six sigma has the DMADV model in place that can be utilized to design innovative products and services once the analysis of the existing ones is completed. Likewise, blue ocean strategy also promotes strategic and innovative thinking that promotes development of new products and services In terms of differences, while blue ocean strategy is based on creating new markets with innovative products , LSS also promotes process improvement and defect reduction in existing products and services. The LSS DMAIC methodology and the the LSS tool suite focus on the improvement of existing products and services and thereby enable competition in an already existing industry wherein the scope for higher margins may be limited due to existing competition. Thanks. Reagrds, LALIT

Over the years, business leaders have realized that only focusing on the company's bottom line is not a sustainable strategy for the future. Given the challenges that the world faces today in terms of poverty, inequality, global climate change etc. , companies have realized the need to address the world's pressing issues while driving the organizations' financial success. This need has helped develop a strategy popularly referred to as the Triple bottom Line (TBL). TBL focuses on social, environmental and financial impact that a company makes on the outside world. The 3 key pillars of the TBL strategy are Profit, People & Planet. From a 'People' standpoint, it is expected that a company will not only focus on its shareholders but also on the wellbeing of its employees, communities within which the company operates, customers etc. The impact that a company makes on the natural environment in terms of carbon footprint, greenhouse gas emissions etc. should be measured from a 'Planet' standpoint. Finally 'Profit' will be the conventional measure of a company's financial performance. Given the above, from a 'Business Excellence' objectives realignment standpoint, it becomes necessary for an organization to widen the scope of its Business excellence objectives so that it covers all the 3 key pillars of TBL approach. While the traditional business excellence (BE) objective for 'Profit' focusses on elimination of waste, reduction of variation, process reengineering etc. to deliver value & reduce costs, it becomes necessary that from a 'People' standpoint, the company makes changes such that its BE objective becomes one to create metrics that measure the true impact that a organization has made on all its stakeholders including shareholders, staff, communities etc. These metrics will then help the organization to realign/fine tune its People strategy & make a stronger impact. Likewise, from a 'Planet' standpoint, the company needs to broaden the scope of its BE objective so that it is able to first measure & analyze the impact it is making on the environment and then put measures in place that will help it meet its commitment from an environment impact perspective. Thanks. Regards, Lalit

Unlike horizontal integration which happens when two companies from the same industry combine by way of acquisition or merger, vertical integration happens when a company acquires another firm which operates below or above the company in the supply chain. Vertical integration can be further broken down into forward vertical integration and backward vertical integration. Forward vertical integration occurs when a company acquires the distribution center/consumer company to which it sells its products or services. Backward vertical integration occurs when a company expands into an activity that is earlier in the supply chain than the one the company is involved in. As an example of backward vertical integration, the company might acquire the supplier of its raw materials. While forward vertical integration helps a company to increase its bottom line & move closer to the end customer, backward vertical integration will enable the company to lower its costs, ensure quality control and also maintain the certainty of supply. Reliance industries is an example of vertical integration. While it has exploration units that seek new sources of oil, it also has subsidiary companies for oil extraction and refining it. Its transport division transports the refined oil to the retailer companies who then sell it to end customers. Another example of vertical integration is Apple which owns the entire supply chain from chipsets to the finished product. This has helped Apple maintain its independence and control the rate at which it produces its products for the end customer. In terms of business excellence strategy, most often than not, the company which acquires the firm either by way of forward or backward vertical integration will try to implement its business excellence strategy in the firm that has been acquired. While there is always room for the company acquiring the firm to benefit from the firm's best practices, it will in all likelihood try to impose its business excellence strategy/principles on the acquired firm/s. Thanks. Regards, Lalit R

In today's rapidly evolving world, digital tools & technologies play a central role in the transformation of the shared services center model. Business leaders need to look beyond the traditional shared services model that is focussed on costs reduction, processing of transactions for multiple business units etc. With the help of data repositories / data hubs & cross functional teams, a new shared services model can be implemented that utilizes automation & continuous improvement to focus on & enhance customer experience. This will help the shared services model transition from just execution of repetitive tasks to a digital, customer focussed 'fit for future' model. The transition to this model will help shared services center to deliver revenue by way of revenue generating projects. Examples of Revenue Generating Projects: 1. In banks, when a customer requests for any maintenance to his existing facility (loan, card, accounts etc) with the bank, typically the request flows from the front office/call center to the shared services/back office wherein the execution of the service request is carried out. However, recently we have implemented a project wherein not only have we automated the backoffice activities for high volume service requests but also provided the maintenance request options on the banks Internet banking and mobile app to enable customer self service & enhance customer experience. This has also helped generate revenue for the bank as the customer now can pay via mobile app / internet banking for services such as credit card replacement, debit card replacement etc and enjoy a seamless experience wherein his request is fulfilled by the next working day. 2. By utilizing innovative technologies like speech analytics, voice biometrics, IVR on the cloud, it has become easier and faster for the contact center agent in the shared services center of a bank to cross sell credit card loans, personal payment plans, credit card balance transfer etc to the customer. This is an example of revenue generation for the shared services center of the bank by way of utilization of implementation of technology and automation. Thanks. Regards, Lalit

When two or more companies from the same industry combine by way of a merger or an acquisition then an example of horizontal expansion has been set. Typically, horizontal integration helps a company to increase its dominance and market share by way of the expansion. From a positive perspective, horizontal integration helps a company to increase its market share, increase revenue, reduce costs etc. However horizontal integration does not always lead to a positive outcome. If not done and managed properly, it can lead to bad performance, reduced growth, increase in attrition etc. It may also negatively impact consumer sentiment as the newly created behemoth will have control on market prices, number of products introduced in the market etc. Examples of horizontal integration are acquisition of Jaguar Land Rover by Tata Motors in 2008, acquisition of Arcelor by Mittal Steel in 2006 and more recently the merger of Facebook with Instagram. In most cases, the business excellence strategy will be negatively impacted for the company which being acquired because in real world scenarios, more often than not, the acquiring company will impose its BE strategy on the newly formed company to ensure uniformity in implementation. Thanks. Regards, Lalit

Typically, SOP is utilized to document the end to end processing steps that have to be followed for manufacturing a product in the production environment / providing a service in the services industry. In essence, a SOP captures the 'As Is' process, list of processing steps, list of typical deviations and processing steps to be followed for such deviations etc. Depending on the product or service being offered, SOP may also contain additional details including list of front end / back end systems, regulatory requirements if any etc. Although the purpose of SOP is to standardize the work, it does not stifle creativity because if there is a requirement to improve process performance or to enhance a product or service, then a DMAIC/DMADV/ LSS process improvement/process reengineering project can be undertaken to further improve or enhance the project/process. Post successful enhancement / development of new product, the revised processing steps can be recorded in the SOP. This procedure can be repeated as many times as required/deemed appropriate to develop a world class product / service. Thanks. Lalit R

TOC is a methodology to identify the most important limiting factor that stands in the way of achieving a goal. TOC focuses on weakest link in chain of processes & lists 5 steps for system improvement: 1. Identify the weakest link (process) in the system 2. Use process improvement methods like kaizen to improve the weakest link / rate of the process 3. Adjust rate of other processes in the chain to match that of the constraining process 4. Invest in the additional equipment/new technology to revise the constraining process & elevate the system 5. Repeat the same steps with a new constraint if system performance can be improved Lean thinking shines the spotlight on waste reduction. Lean is a systematic approach to identify & eliminate waste through continuous improvement. Lean focuses on waste reduction and achieves its goals by using less technical tools like kaizen, visual controls etc. Lean promotes work standardization & flow