ANNUAL REPORT 2013 / 14 A time for transformation and growth Tata Quality Management Services always strives to improvise and become more effective in its quest to be a trusted partner to group companies. As part of this quest, Tata Quality Management Services plans to introduce and lead new initiatives, as well as support existing ones within the group in the near future. The journey so far I am happy to announce that 2013 was a watershed year for the Business Excellence movement in the Tata group. We undertook many initiatives in new areas, and brought “The role of Tata Quality about changes in the management of existing processes. Management Services is going to become even more Amongst the new initiatives, a renewed thrust was made on Operational Excellence and integral in driving new and sharing of promising practices across our existing initiatives across the companies. We have made great strides in the group in the coming years. Operational Excellence initiatives that we have facilitated in some of the flagship companies We have been asked to provide of the group. our support in the areas under the group-wide initiatives We have also brought about several changes in the Assessment process, which are aimed – Customer Centricity, at refining and enhancing its effectiveness. Technology, Diversity, In line with the vision of raising the bar and setting a new benchmark for excellence, the Internationalisation, Rural eligibility of the JRD QV Award was raised to Strategy and Innovation.” the 650+ level, coupled with a two-level jury 3 evaluation for role model attributes. Other Our Innovation journey initiatives also saw a Customer Centricity, Technology, Diversity, recognitions that were being awarded were higher level of maturity of projects, as a result Internationalisation, Rural Strategy and also phased out, with the introduction of a of many Tata companies running internal Innovation. The focus is also on strengthening commendation for companies that achieve InnoVista events before sending across the the core of TBEM, on the basis of inputs the 550+ level. In addition, to bring in higher final entries. We have also made a beginning that have come from the CEOs and senior Board engagement, the process of presenting towards enhancing learning and sharing leadership within the Tata group. In addition, the findings of TBEM Assessments to the across group companies through the Best we are in the process of re-examining the Board was established; these findings were Practices initiative, branded as The Edge Club. group’s vision, mission and values, and the Tata deliberated extensively by several Boards. Code of Conduct (TCoC), in view of the group’s On the Safety front, the Safety Steering global presence. The concept of Deep Dives in Assessments Committee designed and communicated was given a fillip and institutionalised as the Tata group Safety Standards to group These initiatives will need considerable a part of the Assessment process from 2014, companies in February 2014. The Committee planning, strategy and subject matter experts, after the success of several Deep Dives also focused on developing safety capabilities along with a dynamic team in Tata Quality that were conducted for some flagship across group companies through the Management Services, for which we are group companies. formation of industry clusters. already gearing up. The Training activities of Tata Quality In the last year, Sustainability was taken to I would invite you to peruse the specific Management Services moved beyond the group level through the formation of details of our achievements as detailed within the sphere of the Tata Business Excellence the Tata Sustainability Group (TSG), which this Annual Report. As we begin yet another Model (TBEM) to customised workshops will focus not only on social, but also exciting and challenging year ahead, the Tata encompassing the fields of Supply Chain environmental sustainability. Quality Management Services team looks Management, Customer, Technology, Safety, forward to your support and encouragement Best Practices sharing and Operational The way forward in achieving new milestones and setting Excellence. Similarly, our interventions in The role of Tata Quality Management Services higher standards of quality. terms of Improvement initiatives saw higher is going to become even more integral in engagement from the group companies. driving new and existing initiatives across the group in the coming years. We have Sunil Sinha Chief, Group Quality Management Services been asked to provide our support in the areas under the Group-Wide Initiatives – 4 ANNUAL REPORT 2013-14 5 ANNUAL REPORT 2013-14 Contents ANNUAL REPORT 2013-14 Contents FOCUS AREAS OF TATA QUALITY MANAGEMENT SERVICES EVENTS ASSESSMENT pg.08 46 BEC 2013 pg.46 08 TRAINING pg.12 JRD QV AWARDS 2013 pg.48 IMPROVEMENT SERVICES pg.16 Tata INNOVista 2013 pg.50 INNOVATION pg.20 Tata Environment Month 2013 pg.51 CORPORATE GOVERNANCE AND BUSINESS ETHICS pg.26 SAFETY pg.30 CORPORATE INFORMATION SUSTAINABILITY pg.34 EDUCATION EXCELLENCE pg.38 52 VISION, MISSION AND VALUES pg.52 TATA AFFIRMATIVE ACTION PLAN pg.42 ORGANISATIONAL STRUCTURE pg.53 CORPORATE COMMITTEE pg.54 OFFICE ADDRESSES pg.54 6 ANNUAL REPORT 2013-14 7 hat can breed better confidence 2. 550+ point recognition replaces Wthan the fact that an instrument all others that triggers and evaluates change, self We have had several intermediate Assessment applies to demonstrate its willingness to recognitions until now to acknowledge change? This has been the case with the and encourage progress along the Tata Business Excellence Model (TBEM), way. As the ‘Ordinary to Good’ journey which has continuously evolved with time, draws to a close and the ‘Good to Great’ incrementally and transformationally. journey begins, it was time to do away “A wrong answer to a right with other recognitions leaving only The year 2013 was a watershed year for one behind, qualifying at 551 points problem can be corrected. the Business Excellence movement in the and above. This cutoff is also the entry Tata group, as it witnessed the introduction point into the ‘Emerging Industry A right answer to a wrong of a practice that brings the TBEM Leader’ TBEM score band. Assessment outcomes face-to-face with the Governance Board. The wisdom of the 3. Meeting BEBP norms necessary problem is difficult to fix.” Board and the intellectual richness of the to participate in TBEM Award Assessment process can now synergise to Assessments – Peter Drucker, extract the maximum from TBEM principles. The BEBP agreement confers the right in The Effective Executive Continuing on this path of progressive to use the Tata brand in return for change, the Tata Quality Management a commitment to run the business Services Executive Committee has made excellently and ethically. The right several new and meaningful changes built to participate in TBEM Assessments on the strong foundation of the past, is linked to the firm’s compliance to aimed at accelerating the progress of BEBP milestones of achieving a score group companies. of 400 and 500 in the third and fourth year, respectively, after signing. Stricter Below is a summary of changes: adherence to milestone compliance 1. Raising the bar – Eligibility for JRD will be undertaken in a phased manner QV Award now at 650+ from 2014. Companies which do After nearly two decades during which not reach the milestones will have the threshold for the coveted JRD QV to use internal or dip-check Award stood at 600, group companies assessments to guide and measure are now ready to set a new global progress and prepare for the TBEM benchmark for excellence. TBEM, when Award Assessment. defining maturity levels, terms the score band of 651-750 as ‘Industry Leader’ 4. TBEM Assessments begin with board fixing the cutoff at 650 and higher for expectations and end with review true excellence. However, the score will In 2013, the TBEM Assessment only be the first hurdle to clear. Winners outcomes earned appreciation from will also have to demonstrate the the Governing Boards for the quality following characteristics: of insights they brought. To further Industry Leader Attributes: Being a improve engagement in 2014, the financial and customer performance chairman will be requested to provide leader, among others. Assessment teams a short outline of ‘Podium Power’: Applicant should be expectations at the beginning of the an exemplary and have meaningful process. The team and mentor will then contributions for other Tata companies. be required to examine those areas No ‘Fatal Flaws’: There should be no during the Assessment and provide significant vulnerabilities or gaps. their findings. Long-term Sustainability of the business to be focused around long- term value creation. 8 ANNUAL REPORT 2013-14 9 Assessment THE YEAR GONE BY THE ROAD AHEAD 5. Companies scoring 550+ to alternate between life cycle. Going forward, the ExCellerate will The year 2013-14 saw 38 group companies The challenges for value creation are normal Assessment and Deep Dives evolve into a more utilitarian tool with applying for TBEM Assessments. Nearly on an increasingly steep climb, and TBEM Assessments cover the entire width of a feedback from users. 350 Assessors, grouped into various the expectations of every stakeholder company’s activities; however, as companies 3. For a long time, TBEM assessors were dependent teams, went into the depths and widths from the businesses are only mounting. mature, the need for a more granular examination on a check-list to verify the extent of focus on of the companies, holding interviews, Consequently, the expectations from has arisen. The new diagnostic process of Deep safety and deployment by applicant companies. conversations and dialogues using the improvement frameworks such as TBEM Dives was thus designed to focus on certain With the release of the new Safety Criteria within principles of TBEM. These introspective are also rising.