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Business Transformation
Process - Telecom
Transform – Turn Around – Tune Up

December 2008
Contents


Business Transformation Process

Business Audit Focus Areas
Transform-Turnaround-Tune up
  Focus should be on achieving results and not on providing     recommendations, or
  writing reports

  • Implementation should be in line of proposal

  Creation of a joint venture with all cross functional teams

  • Steering Committee, Management Action Teams, Task Force

  Work defined at all levels of the organization

  • Senior management to field staff

  A tailored approach should be there for business


  Diagnose organization's culture & management climate. Trigger a cultural change


  Work on creating enduring relationships with all functions
Contents


Business Transformation Process

Business Audit Focus Areas
Business Transformation – The Steps


Business Audit

   Focus Process

      Roll Out

         Institutionalization
Framework – Strategy implementation

                                                                                 Institutionaliza
            Business Audit           Focus Process             Roll Out
 Stage                                                                                 tion




             Identification &                              Implementation of
                                      Development of                             Institutionalization
           definition of areas of                          solution across all
Activity
                                    solution and testing                            of the process
               improvement                                     variables



                                        Strategic                                    Sustained
           Strategic Direction                                 Strategy
Output                                 Guidelines                                     Strategy
Contents


Business Transformation Process

Business Audit Focus Areas
Business Audit Stage
  Business Audit to have a complete & thorough check-up of the
  health of the organization with a view to
     Establish the agenda for transformation
     Build ownership within the senior management of the
     organization on the ‘need for change’
     Estimate a ballpark estimate of business benefits from the
     transformation project
     Create alignment between our view & the organization’s view
     Build relationships & understanding between us & senior
     management
Business Audit Focus Areas

  Business Audit
     Depending on the critical needs of a business , at a point of
     time, the business audit will focus on some or all of the
     following focus areas
         Business Performance Analysis
         Strategy Planning Analysis
         Organization Culture Analysis
         Process & Systems Analysis
         Operations Analysis
         Marketing Analysis
         Sales & Distribution Analysis
         Customer Satisfaction analysis
Business Analysis
An organization can choose to focus on either operations OR sales
  & marketing

  Operations Analysis takes
          Operation Performance Analysis
          Organization Culture Analysis
          Process & Systems Analysis
          Operations Analysis
          Short Customer satisfaction analysis
  Sales & Marketing Analysis
          Business Performance Analysis
          Organization Culture Analysis
          Process & Systems Analysis
          Marketing Analysis
          Sales & Distribution Analysis
          Customer satisfaction analysis
Business Performance Analysis

                                         Studies



                    •Utilization of Capital Resources
                     :Capacity Utilization, Asset Turns
                     and Return on Fixed Assets, Cost
                                                          • Prioritize the improvement
                     of maintenance.
                                                            objectives on the basis of
                    •Utilization of Working Capital:
  • The objective                                           impact on bottom line
                     Interest on Working Capital,
    of this stage    Inventory Turns and Receivables.     • Understanding business
                    •Trend of revenue growth & market
    is to analyze                                           strategy & business drivers of
                     share growth from existing
    key drivers                                             the future
                     markets & new markets : Product
    that impact                                           • Measures of Economic
                     Portfolio
    the bottom                                              Value, as appropriate
                    •Strategy SWOT Analysis &
    line             Innovation
        Objective   •Employee Productivity :
                     •Revenue Per Employees, Cost Per
                                                                             Output
                      Employee, Conversion Cost as
                      percentage of revenue and Selling
                      & Administrative Costs as
                      percentage of revenue, value of
                      intellectual capital.
                    •Efficiency: Order-to-Delivery
                     Cycle Times and Process Cycle
                     Times
Organization Culture Analysis

                                          Studies



                        • Management Climate
                          Analysis
   • The objective
                        • Competing Values
     of this stage is                                  •Evaluate change readiness of
                          Framework
     analyze the                                        organization
     organizational     • Leadership Analysis &        •Current state of competing values
     culture,                                           & the distance from desired
                          Change Leadership
                                                        culture
     management           Behavior Analysis
                                                       •Approach to align culture to
     climate &          • Measurement of employee       business requirements
     leadership           involvement :Suggestion      •Gaps in leadership & effectiveness
     effectiveness        per Employee, Cross-          of leaders
     of the               Functional Team              •Perception of self & company
     organization         participation, etc           •Perception of improvement
                        • Process for translating TQ    opportunities
                          Principles into Company
                                                                            Output
          Objective       culture
                        • Structured Interviews with
                          Senior Management
                        • Skills & Competency
                          Enhancement Practices
Process & System Analysis

                                                                        Studies




                      •Brown Papers                                                  • Identify gaps in the
                       •Mapping & Critiquing existing management control               internal business
 • The objective        systems in marketing management, distribution                  process &
                        management, productions process management, service
   of this stage is                                                                    management
                        management, planning, purchase management etc.
   to analyze the                                                                      control systems
                      •High Level Process Maps
   business                                                                            .Impact of gaps on
                       •Mapping & Critiquing existing planning process, service
   processes &                                                                         performance
                        delivery process, order management process, complaint
   management
                                                                                     • Measure the
                        redressal process, etc.
   framework of
                                                                                       robustness of the
                      •Resolution systems & processes
   the
                                                                                       existing processes &
                       •Interface issues inside the organization and with external
   organization         partners for end to end processes                              management
                      •Usage of bench marking as a stimulus for process                control systems
                       improvement
                      •Evaluating practices for new product introduction
          Objective    •Practice do you follow to qualify the processes.
                       •Practice to qualify the material/services delivered by the
                                                                                                 Output
                        new process
                      •Systems to capture delivery performance, performance gap
                       in delivery and key operational areas.
                      •Processes & Systems for Information Management
                       •Selection & Use of Comparative Information Including
                        Competitive Data
                       •Systems to review performance and initiate corrective
                        actions
Strategy Planning Analysis

                                                            Studies



                          •Mapping current Strategic Planning Process
• The objective of this
                           •Target customers and value
  stage is to analyze
                                                                            • Gaps in strategy
                            proposition,Competitive environment; present
  how the                   and emerging,Changing                             planning process
  organization              Technologies,Resource Requirements
  implements its                                                            • Opportunities to
                           •Process for establishing goals related to
  mission and vision                                                          align strategy to
                            Quality and Customer Satisfaction
  via a clear                                                                 organizational
                           •Determination of target customers & their
  stakeholder focused       needs                                             needs
  strategy, supported      •Systems to link innovation to growth, systems
  by relevant policies,     to reward innovators
  plans, objectives       •Understanding key strategies and goals and
  targets and              your time table for accomplishing them
  processes                •How do they relate to industry leadership,
                            relate to World Class.
                                                                                         Output
                           •Balance between strategy education and day-
                            to-day operational management
             Objective    •Process for tracking & responding of changes
                           in the external environment
                           •Customer Preferences,Competitive
                            environment,Technologies
Marketing Analysis

                                            Studies



                           • Marketing Transformation
                             Survey
 • The objective of this
                           • Marketing Analysis:
   stage is to analyze                                     • Understanding of current
                             Segments, Trends, Size
   the external forces                                       market landscape
   that affect the         • Analyze competitive           • “Strategic Direction”, which
   business of the           products/services using         includes all elements of the
   organization. These       tools such as 'Radar            marketing mix viz. Product,
   external processes        Diagram.'                       Price, Promotion,
   determine an            • Usage of Other tools of         Distribution
   organization’s            Competition Analysis :
   readiness to market       SWOTs, Marketing
                             Intelligence
                           • Customer Buying Behaviour
                                                                              Output
                             Analysis: In-depth
             Objective       Interviews, Surveys
                           • Marketing Storyboards
                           • Observations & Mystery
                             Shopping Study
                           • Systems for capture &
                             translation of key customer
                             requirements into product
                             design
Sales & Distribution Analysis

                                          Studies


                                                          • Gaps in current sales &
                                                            distribution systems,
                                                            practices & processes
                        • Day in the Life Of (DILO)       • Sales improvement
                          Salesmen, Area Sales Manager,     opportunities
                          Distributor Salesman
  • The objective of                                      • Cost reduction
    this stage is to                                        opportunities-
                        • Customer Call Effectiveness
    analyze the                                             Distribution , Inventory
                          Analysis
    sales &                                                 etc.
                        • Channel Member Economic
    distribution                                          • Salesmen Behaviours &
                          Model & Incentivization
    effectiveness of                                        Training needs analysis
    the organization    • Sales Roles & Responsibility    • Current relationship
                                                            management &
                          Definition & Incentive
                                                            improvement
                        • Current Training Levels :
            Objective                                       opportunities
                          Salesmen, Channel Partners      • Trade marketing
                        • Push vs. Pull : Retailer          effectiveness vis-à-vis
                          Interviews, Observation           best practice
                        • Trade Marketing Analysis :
                                                                              Output
                          Presence, Position,
                          Presentation & Service
                        • Channel Partner Feedback
Customer Satisfaction Analysis


                                                            Studies



                          •Perception of Sales and after-sales
                                                                        • Gaps in current
                          •Activity base costing: Cost of complaints
                                                                          satisfaction
                          •Mapping existing complaint tracking
                                                                          measurement systems &
 • What results the        system
                                                                          processes
   organization is         •Aggregate complaints received, analyze
                                                                        • Satisfaction
   achieving in             and use the information to prevent future
                                                                          improvement
   relation to the          complaints
                                                                          opportunities
   satisfaction of its    •Current Customers and Trade satisfaction
   external                                                             • Cost saving opportunities
                           measurement systems
   customers                                                              :Lean Consumption
                           •Usage of satisfaction data for
                            improvement of Products and Services        • Closing the loop with
              Objective    •Tracking of trends of repeat business,        business & marketing
                            delivery performance.                         strategy
                           •Linking of the findings of satisfaction
                                                                                         Output
                            surveys to derive strategic initiatives
                           •Customer perception of accessibility,
                            communication,flexibility &
                            responsiveness
                          •Service standards for employees that come
                           in contact with the customers
For a Detailed Discussion
Contact
Mobile : +91-9873808241
Landline : +91-124-3020664
E-mail : anurag.bpl@gmail.com

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Business Transformation Telecom

  • 1. Business Transformation Process - Telecom Transform – Turn Around – Tune Up December 2008
  • 3. Transform-Turnaround-Tune up Focus should be on achieving results and not on providing recommendations, or writing reports • Implementation should be in line of proposal Creation of a joint venture with all cross functional teams • Steering Committee, Management Action Teams, Task Force Work defined at all levels of the organization • Senior management to field staff A tailored approach should be there for business Diagnose organization's culture & management climate. Trigger a cultural change Work on creating enduring relationships with all functions
  • 5. Business Transformation – The Steps Business Audit Focus Process Roll Out Institutionalization
  • 6. Framework – Strategy implementation Institutionaliza Business Audit Focus Process Roll Out Stage tion Identification & Implementation of Development of Institutionalization definition of areas of solution across all Activity solution and testing of the process improvement variables Strategic Sustained Strategic Direction Strategy Output Guidelines Strategy
  • 8. Business Audit Stage Business Audit to have a complete & thorough check-up of the health of the organization with a view to Establish the agenda for transformation Build ownership within the senior management of the organization on the ‘need for change’ Estimate a ballpark estimate of business benefits from the transformation project Create alignment between our view & the organization’s view Build relationships & understanding between us & senior management
  • 9. Business Audit Focus Areas Business Audit Depending on the critical needs of a business , at a point of time, the business audit will focus on some or all of the following focus areas Business Performance Analysis Strategy Planning Analysis Organization Culture Analysis Process & Systems Analysis Operations Analysis Marketing Analysis Sales & Distribution Analysis Customer Satisfaction analysis
  • 10. Business Analysis An organization can choose to focus on either operations OR sales & marketing Operations Analysis takes Operation Performance Analysis Organization Culture Analysis Process & Systems Analysis Operations Analysis Short Customer satisfaction analysis Sales & Marketing Analysis Business Performance Analysis Organization Culture Analysis Process & Systems Analysis Marketing Analysis Sales & Distribution Analysis Customer satisfaction analysis
  • 11. Business Performance Analysis Studies •Utilization of Capital Resources :Capacity Utilization, Asset Turns and Return on Fixed Assets, Cost • Prioritize the improvement of maintenance. objectives on the basis of •Utilization of Working Capital: • The objective impact on bottom line Interest on Working Capital, of this stage Inventory Turns and Receivables. • Understanding business •Trend of revenue growth & market is to analyze strategy & business drivers of share growth from existing key drivers the future markets & new markets : Product that impact • Measures of Economic Portfolio the bottom Value, as appropriate •Strategy SWOT Analysis & line Innovation Objective •Employee Productivity : •Revenue Per Employees, Cost Per Output Employee, Conversion Cost as percentage of revenue and Selling & Administrative Costs as percentage of revenue, value of intellectual capital. •Efficiency: Order-to-Delivery Cycle Times and Process Cycle Times
  • 12. Organization Culture Analysis Studies • Management Climate Analysis • The objective • Competing Values of this stage is •Evaluate change readiness of Framework analyze the organization organizational • Leadership Analysis & •Current state of competing values culture, & the distance from desired Change Leadership culture management Behavior Analysis •Approach to align culture to climate & • Measurement of employee business requirements leadership involvement :Suggestion •Gaps in leadership & effectiveness effectiveness per Employee, Cross- of leaders of the Functional Team •Perception of self & company organization participation, etc •Perception of improvement • Process for translating TQ opportunities Principles into Company Output Objective culture • Structured Interviews with Senior Management • Skills & Competency Enhancement Practices
  • 13. Process & System Analysis Studies •Brown Papers • Identify gaps in the •Mapping & Critiquing existing management control internal business • The objective systems in marketing management, distribution process & management, productions process management, service of this stage is management management, planning, purchase management etc. to analyze the control systems •High Level Process Maps business .Impact of gaps on •Mapping & Critiquing existing planning process, service processes & performance delivery process, order management process, complaint management • Measure the redressal process, etc. framework of robustness of the •Resolution systems & processes the existing processes & •Interface issues inside the organization and with external organization partners for end to end processes management •Usage of bench marking as a stimulus for process control systems improvement •Evaluating practices for new product introduction Objective •Practice do you follow to qualify the processes. •Practice to qualify the material/services delivered by the Output new process •Systems to capture delivery performance, performance gap in delivery and key operational areas. •Processes & Systems for Information Management •Selection & Use of Comparative Information Including Competitive Data •Systems to review performance and initiate corrective actions
  • 14. Strategy Planning Analysis Studies •Mapping current Strategic Planning Process • The objective of this •Target customers and value stage is to analyze • Gaps in strategy proposition,Competitive environment; present how the and emerging,Changing planning process organization Technologies,Resource Requirements implements its • Opportunities to •Process for establishing goals related to mission and vision align strategy to Quality and Customer Satisfaction via a clear organizational •Determination of target customers & their stakeholder focused needs needs strategy, supported •Systems to link innovation to growth, systems by relevant policies, to reward innovators plans, objectives •Understanding key strategies and goals and targets and your time table for accomplishing them processes •How do they relate to industry leadership, relate to World Class. Output •Balance between strategy education and day- to-day operational management Objective •Process for tracking & responding of changes in the external environment •Customer Preferences,Competitive environment,Technologies
  • 15. Marketing Analysis Studies • Marketing Transformation Survey • The objective of this • Marketing Analysis: stage is to analyze • Understanding of current Segments, Trends, Size the external forces market landscape that affect the • Analyze competitive • “Strategic Direction”, which business of the products/services using includes all elements of the organization. These tools such as 'Radar marketing mix viz. Product, external processes Diagram.' Price, Promotion, determine an • Usage of Other tools of Distribution organization’s Competition Analysis : readiness to market SWOTs, Marketing Intelligence • Customer Buying Behaviour Output Analysis: In-depth Objective Interviews, Surveys • Marketing Storyboards • Observations & Mystery Shopping Study • Systems for capture & translation of key customer requirements into product design
  • 16. Sales & Distribution Analysis Studies • Gaps in current sales & distribution systems, practices & processes • Day in the Life Of (DILO) • Sales improvement Salesmen, Area Sales Manager, opportunities Distributor Salesman • The objective of • Cost reduction this stage is to opportunities- • Customer Call Effectiveness analyze the Distribution , Inventory Analysis sales & etc. • Channel Member Economic distribution • Salesmen Behaviours & Model & Incentivization effectiveness of Training needs analysis the organization • Sales Roles & Responsibility • Current relationship management & Definition & Incentive improvement • Current Training Levels : Objective opportunities Salesmen, Channel Partners • Trade marketing • Push vs. Pull : Retailer effectiveness vis-à-vis Interviews, Observation best practice • Trade Marketing Analysis : Output Presence, Position, Presentation & Service • Channel Partner Feedback
  • 17. Customer Satisfaction Analysis Studies •Perception of Sales and after-sales • Gaps in current •Activity base costing: Cost of complaints satisfaction •Mapping existing complaint tracking measurement systems & • What results the system processes organization is •Aggregate complaints received, analyze • Satisfaction achieving in and use the information to prevent future improvement relation to the complaints opportunities satisfaction of its •Current Customers and Trade satisfaction external • Cost saving opportunities measurement systems customers :Lean Consumption •Usage of satisfaction data for improvement of Products and Services • Closing the loop with Objective •Tracking of trends of repeat business, business & marketing delivery performance. strategy •Linking of the findings of satisfaction Output surveys to derive strategic initiatives •Customer perception of accessibility, communication,flexibility & responsiveness •Service standards for employees that come in contact with the customers
  • 18. For a Detailed Discussion Contact Mobile : +91-9873808241 Landline : +91-124-3020664 E-mail : anurag.bpl@gmail.com