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For:
Excellence is not an accident ! Professors and professionals tell us time and again that any achievement needs sincere effort and
indefatigable mental attitude . ORGANISATIONAL DEVELOPMENT as a topic itself complicated and demands multidimensional
study , and understanding . It was really excellent having worked on the two project assignments related to OD, which helped to gain a
clear understanding on Organizational Diagnosis & Process Improvement Programs and in further understanding the concept of OD as a
whole.
This report bears an imprint of many people. Without their contribution this project could not been as it is now. First of all my sincere
thanks to Mr. Nitin Shankar whose guidance on quality is noteworthy.
.
xxxxxx
CAMI CODA
C O N T E N T S
Acknowledgement
Project Diagnosis of the Current Organization using Malcolm Baldrige Performance Excellence Model
Section I
Project Objective
Illustration - Baldrige Performance Excellence Framework
Section II
Criteria for Performance Excellence Item Listing
Preface: Organizational Profile
1. Leadership
2. Strategic Planning
3. Customer Focus
4. Measurement, Analysis and Knowledge Management
5. Workforce Focus
6. Process Management
7. Results
Section III (A)
Score Summary Work-Sheet
Section III (B)
Outcome Analysis
Section IV
Project Summarization
Section IV
Project Summarization
SECTION I
PROJ ECT OBJ ECTI VE
DI A GN OSI S OF TH E CURREN T ORGAN I ZA TI ON USI N G M AL COL M BA L DRI GE EXCEL L EN CE M ODEL
With the pace of change in technology, macro economic situations and global impact on each business makes it for all organisations to be
in their toe. This makes it imperative to achieve and strive for excellence in every aspects of the organisation.
The objective of diagnosing the Organisation using the Malcolm Baldrige Excellence Model is to assess the performance of the Organization
and to create a foundation for the Organization's journey towards continuous improvement.
Hence, the project study has been undertaken with important purposes like:
1.
2.
3.
4.
5.
The Baldrige Criteria for Performance Excellence, therefore, provides a framework for continuous improvement aimed at getting the results
that are important to the organization.
The framework being designed in this project is exactly in line with the Baldrige Model, to help the present organization use an aligned
approach to organizational performance management.
BAL DRI GE CRI TERI A FOR PERFORM A N CE EXCEL L EN CE FRA M EW ORK A SY STEM S PERSPE CTI VE
I have re-produced the Baldrige model frame work herewith, since it is being used as the basic criteria for the current Organisational
Diagnosis:
Organisational Profile:
Environment, Relationships & Challenges
2.
1.
Leadership
5.
Strategic
Workforce
Planning
Focus
7.
Results
3.
6.
Customer
Process
Focus
Management
4.
Measurement, Analysis and Knowledge Management
Systems Perspective
Figure 1- Baldrige Performance Excellence Framework
SECTI ON I I
CRI TERI A FOR PERFORM A N CE EXCEL L EN CE I TEM L I STIN G
P. PREFACE: ORGANIZATIONAL PROFILE
P.1 Organizational Description
P.2 Organizational Situation
CATEGORIES AND ITEMS
POINT VALUES
1. LEADERSHIP
120
70
50
2. STRATEGIC PLANNING
85
40
45
3. CUSTOMER FOCUS
85
40
45
85
45
40
6. PROCESS MANAGEMENT
85
35
50
7. RESULTS
450
7.1
7.2
7.3
7.4
7.5
7.6
100
70
70
70
70
70
Product Outcomes
Customer-Focused Outcomes
Financial and Market Outcomes
Workforce-Focused Outcomes
Process Effectiveness Outcomes
Leadership Outcomes
TOTAL POINTS
45
45
1,000
P. Organisational Profile :
In line with the Baldrige Model (top of figure 1), the current Organizational Profile has been described in the context of the way it
operates, the environment, key working relationships and strategic challenges. It shall, therefore, provide a framework for better
understanding of the present Organization.
P.1Organizational Description, this includes the organizations core competencies and their relation to the organizations mission.
In this section the present Organizations operating environment and its KEY relationships with Customers, Suppliers, Partners and
Stakeholders, that shape the organisational environment, has been covered.
The organizations governance system has also been addressed.
CORPORATE
PHILOSOPHY & GUIDELINES
A driving force behind Capital Foods Limited growth came from the leadership of the founder Mr.
Ajay Gupta.
PHILOSOPHY
The organization formed with an aim to be in the business of elevating the experience of foods
consumption by profitably selecting, perfecting and integrating international foods for the global
populace.
Thereby it intends to excite the psychological, nutritive and lifestyle variants, in other words, it is in
the business of GLOBAL FOOD CULTURE.
The transparent behavior and honest approach should be used with external partners, such as
suppliers, journalists and dealers, because only a constructive trusting relationship can help
overcome difficulties. When we achieve this, society will recognize and appreciate the uniqueness of
our organization and team spirit. A spirit, which embodies our common feeling of Manufacturing
organization-ness.
Striving for excellence and growth with aggression. Always open to new ideas and suggestions.
Transparency in dealings and fair deal with all.
MANAGEMENT
POLICIES
VALUES
BELIEF
ENVIRONMENTAL
PROTECTION
CONTRIBUTIONS
TO SOCIETY
Capital Foods Limited is actively involved in environment protection and pollution free surrounding. It
follows
1. Proper processing of wastes and pollutants
2. Efficient use of natural resources and recycling
3. Legally required measurements, recording and reporting standards followed.
In order for Capital Foods Limited to be a good corporate citizen with strong roots in the community
and society at large, we will actively participate in activities that contribute to the well being of
society.
1. Social welfare
2. Disaster relief
We strive to provide a safe, hygienic and comfortable work environment for every Capital Foods
Limited Employee for
SAFETY AND
HYGIENE
1. Prevention of discrimination
2. Prohibition of Use of Discriminatory Language
H
DISCRIMINATION
PROTECTION
PRIVACY
OF
To make sure Capital Foods Limited emphasizes the privacy of individuals, we do our utmost to
respect and protect privacy.
1. Respect for Privacy Protection
2. Prevention of Unauthorized Revelation of Private Information
To make sure Capital Foods Limited maintains a fair and sound relationship with our business
partners, we conduct fair, sound transactions.
BUSINESS
TRANSACTIONS
P.1a The Organization Mission, Corporate Vision and Core Competence, Core competence linked with Mission Statement is as
follows
MISSION
STATEMENT
Following are the three major visions of Capital Foods Limited for the year 2020.
B
CORPORATE
VISION 2020
Setting up the Indias largest Mega Food Park ,where in to provide everything required in Food
Manufacturing Industry.
Penetrate at least 2000 cities of India & 100 overseas countries with its own brand products :
Smith & Jones, Chings Secret & Raji.
Establishing as single most important brand in Foods & Foods related products.
COMPLIANCE
CORE
COMPETENCY
CORE
COMPETENCE
LINKED WITH
MISSION
STATEMENT.
P.1b The Relationship in Organization which focuses on workforce and culture development
Relations
ORGANIZATION RELATIONSHIPS
Culture
Employee engagement level Medium .Employee bonding Good, Employee growth average,
High responsiveness to market, , Decision making is fast, Informal culture.
hips
Core Competencies of Capital Foods Limited excellent quality product and deep
entrenched distribution & retailing systems.
Relationships with
Suppliers, Partners and
Collaborators
Governmental Agencies
P.1c Work Force -50% of workforce comprises of sales force and 40% constitutes the manufacturing staff , rest 10 % staff are support
and management (Junior, middle and senior ).
P.2a The Organization strategic context covers Strategic Business Objective, Strategic Planning, PESTEL Analysis, Critical Success
Factors and Strategic Thrust
STRATEGIC
BUSINESS
OBJECTIVES
STRATEGIC
PLANNING
i)
ii)
iii)
To increase the sales from 180 Crore (2011) to 500 Crore (2014)
Penetrate the brand as well as product to at least 1400 cities
Launch the new brand for commodity products latest by 2012
PESTEL
Political & Economical
Continuous govt. support for Food Processing Industry
Government Policy is in favor of FDI & FII in this sector
Implementation of liberalization decontrol of government control
Tax Incentive & Subsidy to this sector
Society
Company is technology friendly and updates its technology with soonest possible time
This industry is also favorable for usage of technological products.
Company follows much higher standards than what set by pollution control.
All the statutory and legal obligations are followed sincerely
CRITICAL
SUCCESS
FACTOR
STRATEGIC
THRUST
Brand Image
Dealer Network
Meeting Highest Quality & Taste Standards
Strengthen cost competitiveness
SWOT
STRENGTH
WEAKNESS
OPPORTUNITIES
THREAT
PRODUCT
INSTANT MIX
SUBSTITUTES
1.
2.
3.
4.
5.
NOODLES
Available Alternatives
Switching Cost
Suitability of Alternatives
Price Sensitivity
Potential Substitute
BUYER
6. Buyer Concentration
7. Price Sensitivity
8. Switching Cost
9. Volumes
10. Threat of backward Integration
11. Substitute of Products
12. Heterogeneity
SUPPLIER
13. Supplier Concentration
14. Substitute supplier
15. Switching cost
16. Threat of forward Integration
17. Buyer information
RIVALRY
POTENTIAL ENTRANT
18
21
18
1.1
Senior
Leadership
Vision and
Values
Deployment of Organization Vision and valuesPDCA Quarterly business review meetings chaired
by MD are conducted.
Communication
and
Organization
Performance
Management
utilize
formal
and
informal
mechanism to inform, empower and engage
employees. Performance management Process.
Quarterly review on performance by Department
Heads.
Employee Grievance is handled by open door
policy.
Company News Letter is used for communication
of values and beliefs as well.
Following tools are used for communication
Email
Meetings
Notice Board
1.2
Governance
and Social
responsibilities
Organizational
Governance
Governance
Compliance
Ethics
Audit system.
Support of key
communities
Organization
is
not
strongly
involved in developing the near by
communities.
In identifying the LEADERSHIP aspect and arriving at the score, besides analysing the organisation, the senior leaders were put through
many questions to elicit required information. Some of them are the following; these are divided into 2 broad categories and the
responses were obtained and ratings arrived.
Part I
How difficult had been Strategy Deployment (than developing strategy):
deployed? How
do
you know?
your leadership team? How
do
all
members youre Workforce? How
do
you
know?
How do
you know?
you
do
know?
you
know?
1a Our Workforce knows our organizations mission (What we are trying to accomplish).
1b Our Workforce knows our organizations vision (Where it is trying to go in the future).
1c Our leadership team uses our organizations. Values to guide our organization and employees.
1d Our leadership team creates a work environment that helps our employees do their jobs.
1e Our leadership team shares information about the organization.
1f Our leadership team asks employees what they think
Note: These two sections further helped me to ask more detailed questions under these Criterias and accordingly more precise
informations could be elicited from the Senior Leaders.
STARTEGY DEVELOPMENT
Figure 1ISTRATEGY
WHERE TO PLAY
HOW TO PLAY
How much focus on each decision of where to play versus the others? What degree of
strategic alliance at each step of the value chain? what value proposition to each
customer segment?
WHAT RESOURCES
ARE NEEDED TO
PLAY
WHEN TO PLAY
DEPLOYEMENT PROCESS
2.1
Strategic
Planning
a.
Strategic
Deployment
Process
The Management block facilitates to ensure
alignment of all business plans, communication
completion of deadlines, and ensure consistent content
and focus.
STRATEGIC
OBJECTIVES
Operation
Purchase
Quality
Logistics
Retail Chain
2.2
STRATEGY
DEPLOYMENT
a.
ACTION PLAN
b.
PERFORMANCE
PROJECTIONS
No
action
planning
engaging employees .
for
In identifying the STRATEGIC PLANNING aspect, many aspects strategy development & deployment were examined; the present
Organisation (Sr. Leaders) was examined by asking questions from these perspectives, some of the questions necessitated are the
following. The responses from these and many others helped arrive to the overall score.
2e Our organization is flexible and can make changes quickly when needed.
Customer and market knowledge: How do you obtain and use customer and market knowledge? (40pts)
Customer relationship and satisfaction: How do you build relationships and grow customer satisfaction? (45)
In the Customer Focus Category it has been examined how the present organization engages its customers for long-term marketplace
success. In the study of its Engagement strategy, the customer -focused culture building has been included. Also examined is how the
organization listens to the voice of its customers and uses this information to improve and identify opportunities for innovation. Therefore,
in this segment the following has been analysed:
- focus on meeting customers needs
- building relationships and
The customer engagement of this organisation is, therefore, examined to seek if it acts as an important outcome of an overall customer
culture and listening, learning and performance excellence strategy
Customer and
Market Focus
a
Customer
( Distributor &
Retailer ) and
market
Knowledge
3.2
Customer
Relationship
and Satisfaction
a
Customer
(Distributor &
Retailer )
Relationship
building
Customer
Satisfaction
Determination
Customer
satisfaction relative to
cross function segment is
not measured or is a
source for strategic
decision.
Therefore, the Measurement, Analysis, and Knowledge Management category has examined how the organization:
- selects;
- gathers;
- analyzes;
- manages and
- improves its data, information and KNOWLEDGE ASSETS
Under this Category it has been also examined how the present organization reviews and uses the reviews to improve its performance.
While attempting to analyse this section, it was borne in mind that the Measurement, Analysis, and Knowledge Management Category is
the main point within the Criteria for all key information about effectively measuring, analyzing and improving performance and managing
organizational knowledge to drive improvement and organizational competitiveness.
In the simplest terms, Category 4 is the brain centre for the alignment of the organizations operations with its strategic objectives.
Central to such use of data and information are their quality and availability. Furthermore, since information, analysis and knowledge
management might themselves be primary sources of competitive advantage and productivity growth, in this Category such strategic
considerations have been also included.
a.
Measurement ,
Analysis and
Knowledge
Management
Performance
Measurement
No benefit/Risk
analysis
In identifying the Measurement, Analysis and Knowledge Management aspect and arriving at the score, besides analysing the
organisation, the senior leaders were put through many questions to elicit required information. Some of them are the following; these are
divided into 2 broad categories and the responses were obtained and ratings arrived.
/Disagree
measures of improvement.
4d Our employees get all the information they need to do their work.
4e Our employees know how our organization as a whole is doing
ANALYS
IS
Area of Analysis
Analytical Method
Performed by
Finance Head
Market Segmentation
Sales Head
Market Share
Sales Head
New Product
Development
Competitive opening
Quality
RCA review
Purchase
Material head
Financial Performance
COMMUNICATION OF
Methods
Communication
Responsibility
Frequency
Audience
President Sales
Annual &
Monthly
Sales Team
Conference
call / Meeting
HOD
Monthly
Department Employee
or team member
RESULTS
overall business
PDCA
HOD
Monthly
Team Members
Work Force Engagement: How do you engage your workforce to achieve organizational and personal success? (45)
Workforce Environment : How do you build an effective and supportive workforce environment ?(40)
In this Workforce Focus category, the key Workforce practices has been addressedthose directed towards creating and maintaining a
high performance work environment and toward engaging the present Organisations Workforce to enable it and organization to adapt to
change and to succeed.
The Workforce focus also includes capability and capacity needs and Workforce support climate. To reinforce the basic alignment of
Workforce management with overall strategy, the Criteria further covers human resource or Workforce planning as part of overall planning
in the Strategic Planning Category.
5.1
Work Force
Focus
Work force
Enrichment
No skill or knowledge
sharing program.
No innovation idea
capturing mechanism.
No induction procedure
which aids to remove employee
anxiety and make him/her
comfortable.
No mechanism to reward
high performing employees or
giving them opportunity o
involves them on visibility
projects.
No on spot / employee
recognition method.
Workforce
Leadership
Enrichment
Assessment
of Workforce
engagement
5.2
Workforce
Environment
Workforce
Capability
and Capacity
No formal mechanism to
measure employee
engagement.
Position identification
Sourcing
Initial screening
Interview
Final candidate selection
Post offer background check. Recruitment data, turnover,
promotion, and performance management process rating are
used to monitor in an effort to gauge effectiveness of our
hiring process and retention practices.
Workforce
Climate
Work system design: How do you design your work system ? (35)
Work Process management and Improvement :How do you manage and improve your key organizational work processes ?(50)
In The Process Management Category it has been examined how the present organization designs its Work Systems and how it manages
and improves its Key processes for implementing those Work Systems to deliver Customer value and achieve organizational success and
Sustainability. Also examined is its readiness for emergencies.
Process Management has been considered as the focal point within the Criteria for the Organisations key work systems and work
processes. This Category therefore addresses:
It was looked into if the organisation pays specific attention to the need to prepare for potential emergencies and to ensure continuity of
operations.
6.1
Work System
Design
Core
Competencies
Work Process
Design
There is no systematic
process or interval of
timeframe followed.
Emergency
Readiness
6.2
Work Process
Management
and
Improvement
Work Process
Management
For any work processes SOP are created and used for
There is no IT support
training the employees. Modifications to work processes
to measure and monitor the
are require updating SOPs and training employees affected real time data.
in the new procedures and requirements. HODs are
There is no
responsible for maintaining SOPs. Key process measures
mechanism to Minimization
are identified to control and monitor processes. Methods
of costs for inspection, Test
used for implementation for new and modified work
etc.
processes include pilot testing or parallel processing.
Measures are defined for all key work process and are
used for control and improvement. Process owners monitor
key work process performance measures on a routine basis
(daily, weekly or monthly). In addition product line,
functional area and operations personnel routinely monitor
in process measures hourly daily or monthly based on the
cycle time of data.
Work Process
Improvement
In identifying the PROCESS MANAGEMENT aspect and arriving at the score, besides analysing the organisation, the senior leaders were
put through many questions to elicit required information. Some of them are the following; these are divided into 2 broad categories and
the responses were obtained and ratings arrived.
7.1 Product and service outcome: What are the products and services performance results? (100)
7.2 Customer focused results: What is customer focused performance results? (100)
7.3 Financial and market outcome: What are the financial and market place performance results? (70)
7.4 Workforce-focused outcome: What is your workforce focused performance results? (70)
7.5 Process Effectiveness Outcomes : What are your process effectiveness results (70)
7.6 Leadership outcome : What are the leadership results (70)
In The Results Category it has been examined about the present organizations Performance and improvement in all Key areas viz.,
Product outcomes, Customer-focused outcomes, Financial and Market outcomes, Workforce-focused outcomes, Process Effectiveness
outcomes, and leadership outcomes. Performance Levels were then examined relative to those of competitors and other organizations with
similar product offerings and in same functional domain.
The Results Category, therefore, provides a results focus that encompasses Organisations objective evaluation and its customers
evaluation of the organizations product offerings, overall financial and market performance, Workforce results, your leadership system and
societal responsibility results, and results of all key processes and process improvement activities. Through this focus, the Criterias
purposes superior value of offerings as viewed by its customers and the marketplace; superior organizational performance as reflected
in your operational, Workforce, legal, ethical, societal and financial indicators; and organizational and personal learningare maintained.
This Category thus provides real-time information (measures of progress) for evaluation and improvement of processes and products, in
alignment with the present Organisations overall organizational strategy.
7. Results
Result
The organization measure the Organization performance Monthly, Quarterly, half yearly and
annually on the following parameters.
7.1 Product
Outcomes
7.2 CustomerFocused
Outcomes
7.4 WorkforceFocused
Outcomes
7.5 Process
Effectiveness
Outcomes
7.6 Leadership
Outcomes
The organization evaluates the Skill Improvement of associates. Semi Skilled, Skilled
and Multi skilled
RESULT- SCORE
SCORING SHEET
SN
Categories
Leadership
Strategic
Planning
Customer and
Market Focus
Measurement,
Analysis and
Knowledge
Management
Workforce
Focus
Process
Management
Sub Categories
120
85
85
90
85
85
Max
Range
Level
Score
Achieved
Senior
Leadership
70
40-60
55
38.5
Governance and
Social
Responsibilities
50
40-60
70
Strategy
Development
40
40-60
55
22.0
Strategy
Deployment
45
40-60
55
24.75
Customer and
Market
Knowledge
40
40-60
50
20.0
Customer
Relationship and
Satisfaction
45
40-60
60
27.0
Measurement ,
analysis and
Improvement of
organizational
Performance
45
40-60
40
18.0
Management of
Information,
Information ,
Technology and
Knowledge
45
40-60
40
18.0
Workforce
Engagement
45
40-60
60
27.0
Workforce
Environment
40
40-60
50
20.0
Work System
Design
35
40-60
50
17.5
Work Process
Management
and
Improvement
50
40-60
40
20.0
35.0
Page 51 of 54
7.1
Results
450
Product and
Service outcome
100
40-60
40
40.0
7.2
Customer focus
outcome
70
40-60
40
28.0
7.3
Financial and
Market outcome
70
40-60
50
35.0
7.4
Workforce
focused
outcome
70
40-60
50
35.0
7.5
Process
effectiveness
outcome
70
40-60
40
28.0
7.6
Leadership
outcome
70
40-60
40
28.0
Grand Total
1000
408.25
The scorings are done on the basis of the small sample survey that was conducted for
doing this project about Capital Foods Limited. The scoring in Result section is based on
lots of facts and figures as, The Market share in the markets where we have presence,
The % of growth in sales (Both Volume and Amount), The ratio of sales versus the
manpower cost, the sales versus operational cost, the placement of products and
number of markets covered, the number of outlets covered versus the actual number of
outlets in the city, the competitive share of market etc.
SECTION III (B)
OUTCOME ANALYSIS
innovation), as well as integration with other processes and work units, occur. Although
the ADLI factors are linked, feedback to Baldrige Award applicants reflects strengths and
opportunities for improvement in any or all of these factors.
Results items call for data showing performance levels, trends, and relevant comparisons
for key measures and indicators of organizational performance, and integration with key
organizational requirements. Results items also call for data on the breadth of the
performance results reported. This is directly related to deployment and organizational
learning; if improvement processes are widely shared and deployed, there should be
corresponding results. A score for a results item is thus a composite based on overall
performance, taking into account the four results factors.
50%,
55%,
60%
or
65%
Process
Linked to
Approach
Deployment
Learning
Integration
40%,
or
45%
Process
Linked to
Levels
Trends
Comparisons
Integration
Section IV
PROJECT SUMMARIZATION
Page 53 of 54
The Organization Audit through Malcolm Balridge Excellence has provided an analogy for
learning; which proved as an essential attribute to know the continuous improvements
and growth of the current Organization. It, therefore, served as a critical concept in
understanding performance excellence.
From the Post Result/Score Analysis, it has been noted that the present Organization
which is at its Learning & Strategic Improvement level as of now, can well improve
further through effective, well-deployed ways to reach the highest levels of organizationwide improvement, refinement and innovation i.e., a learning to make a steady
progression to reach the highest levels of maturity - Organizational Analysis &
Innovation.
The use of the performance excellence model/approach has had significant benefits.
Beyond the improvement in financial aspects other clear benefits includes:
Thus, it can be concluded, the Baldrige Performance Excellence Model surely provides
deep perception/insight for all kinds of Organization, in attaining business excellence in
their respective domains.
= = == = = == = = == = = == = =
Page 54 of 54