Management Challenges In Turbulent Times

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Information about Management Challenges In Turbulent Times

Published on February 25, 2009

Author: DineshKakkad

Source: slideshare.net

Description

The presentation shows how Micro, Small, Medium Enterprizes can improve their performance and survive in these times of Global meltdown.

Excellence unLimited, Rajkot

Excellence unLimited, Rajkot In this highly competitive world, and in Global meltdown situation, Darwinian Principle of “ Survival of the Fittest ” will prevail. It is, hence, imperative for MSMEs to be fit. Also Big fish eats up small fish, if she does not protects itself. Moreover in bad times, Weak is hitted hard.

Excellence unLimited, Rajkot Individually, MSME may feel weak and Vulnerable, but collectively, they are very strong ! Collectively, they contribute 48 % of total industrial production and 40 % of total exports !! However, in this slowdown, their output have reduced 2 % in current fiscal. More and more units are getting sick. Challenge is, how to regain previous health.

Excellence unLimited, Rajkot Management is doing things right, Leadership is doing right things. First things First – Lets understand Management and Leadership In other words, Management means implementing things rightly, Leadership means conceptualizing right things.

Management is doing things right,

Leadership is doing right things.

Management means implementing things rightly,

Leadership means conceptualizing right things.

Excellence unLimited, Rajkot

Excellence unLimited, Rajkot Strategy is about long term future of an organization based on a deep analysis of what a company’s competencies really are and then What is Strategy ? Strategy is undelegable function of top leadership. a creative process of finding external opportunities to encash those competencies to create a competitive advantage.

Excellence unLimited, Rajkot Tactics, as opposed to Strategy, is near term actions to solve specific problems or accomplish specific goals. What is Tactics ? Its planned and ad hoc actions are meant to meet the demands of the moment. Strategy is designed by leadership , While tactics is actions implemented by management to achieve strategy.

Excellence unLimited, Rajkot Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. Sun Tzu All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. Sun Tzu Strategy or Tactics ? Are they relevant to us? Both Strategy and Tactics are required. They are like plan and implementation.

Strategy without tactics is the slowest route to victory.

Tactics without strategy is the noise before defeat. Sun Tzu

All men can see these tactics whereby I conquer,

but what none can see is the strategy out of which

victory is evolved. Sun Tzu

Excellence unLimited, Rajkot Strategy is a long term future perspective of an organization, hence you have to visualize where do you want to be, and how you reach there. i.e. Vision, Mission and Values ( VMV ) Before undertaking journey, one has to understand where one is currently. i.e. SWOT Analysis ( devised by Albert Humphrey ) Tools and Process of formulating Strategy

Strategy is a long term future perspective

of an organization, hence you have to visualize

where do you want to be, and how you reach there.

i.e. Vision, Mission and Values ( VMV )

Before undertaking journey, one has to understand

where one is currently.

i.e. SWOT Analysis ( devised by Albert Humphrey )

Excellence unLimited, Rajkot Strengths and weaknesses are internal to an organization, while opportunities and threats are due to external environment. SWOT To fully understand the external environment, one has to analyze it by – PESTLE Analysis and Porter’s 5 Forces Analysis

Excellence unLimited, Rajkot P = Political environment and changes, PESTLE Analysis E = Economic ( local, national and global ) environment and changes, S = Socio - cultural environment and changes, T = Technological environment and changes, L = Legal ( Regulatory ) environment and changes, E = Environmental ( Ecological ) framework and changes,

P = Political environment and changes,

E = Economic ( local, national and global )

environment and changes,

S = Socio - cultural environment and changes,

T = Technological environment and changes,

L = Legal ( Regulatory ) environment and changes,

E = Environmental ( Ecological ) framework

and changes,

Excellence unLimited, Rajkot Porter’s 5 Forces Analysis One has to understand the impact of new entrants, substitute products, buyers, suppliers & competition.

Excellence unLimited, Rajkot After understanding oneself ( SWOT ) and deciding on where to go and how to go ( VMV ) , the next step is to translate the vision into Strategic Plan . Strategic plan has necessarily 2 components, Short Term and Long Term. Both of these run concurrently. Strategic Plan

Excellence unLimited, Rajkot The strategic plan is implemented through SMART short and long term goals . Both of these run simultaneously. SMART = S pecific, M easurable, A chievable (with a stretch), R ealistic and T ime bound. The tool to implement Strategic Plan is Balanced Score Card ( BSC ) devised by Kaplan and Norton.

Excellence unLimited, Rajkot I do not believe you can do today's job with yesterday's methods and be in the business tomorrow. ~ Nelson Jackson

Excellence unLimited, Rajkot MSMEs have to change their ways to be in business, Both in short term ( tactics ) as well in long term ( Strategy ).

Excellence unLimited, Rajkot Do not shut the shop. It is very difficult to restart in standstill position, as well losing customers. Short term ( immediate ) measures - 1 Keep your financial position healthy within your repayment capacity. It is better not to borrow. If you have already borrowed money, replace it with cheaper loans. Central, state Govt. & banks have sch. for MSMEs. Key skilled staff is your valuable asset. If you lose them, it is very difficult to regain them.

Do not shut the shop. It is very difficult to restart

in standstill position, as well losing customers.

Keep your financial position healthy within your

repayment capacity.

It is better not to borrow. If you have already

borrowed money, replace it with cheaper loans.

Central, state Govt. & banks have sch. for MSMEs.

Key skilled staff is your valuable asset.

If you lose them, it is very difficult to regain them.

Excellence unLimited, Rajkot Keep your wheels moving. Fulfill your order book obligations at any cost. This is way to build loyalty. Short term ( immediate ) measures - 2 Try to work at maximum possible capacity, even taking outside job work. Relook at your costing for raw materials, processing, inventory, sales and marketing costs, interest etc. and find out improvement opportunities. Keep your staff skills battle ready by training and retraining. This will also keep their morale high.

Keep your wheels moving. Fulfill your order book

obligations at any cost. This is way to build loyalty.

Try to work at maximum possible capacity,

even taking outside job work.

Relook at your costing for raw materials, processing,

inventory, sales and marketing costs, interest etc.

and find out improvement opportunities.

Keep your staff skills battle ready by training and

retraining. This will also keep their morale high.

Excellence unLimited, Rajkot 5 S : This will surface the problems and reduce inventory and release resources, Tools for immediate use SPC ( 7 QC tools ) : This will help you to analyze your costs, cycle time, process efficiency, COPQ : This will provide tremendous opportunity for cost benefits, without sacrificing quality. ( Nearly 30% of cost is due to various wastes ) Benchmarking / Best practices : Learn good things from others to improve cost, cycle times, efficiency

5 S : This will surface the problems and reduce

inventory and release resources,

SPC ( 7 QC tools ) : This will help you to analyze

your costs, cycle time, process efficiency,

COPQ : This will provide tremendous opportunity

for cost benefits, without sacrificing quality.

( Nearly 30% of cost is due to various wastes )

Benchmarking / Best practices : Learn good things

from others to improve cost, cycle times, efficiency

Excellence unLimited, Rajkot Process approach : Map every process and simplify to reduce variations, waste, cycle time, e.g. ISO 9001 Near term strategic tools Systems approach : No processes are stand alone, all are interlinked. Adoption will enhance value. Have long term philosophy : Do SWOT analysis, identify and grab your opportunities , define VMV collectively and work on goals as a team. Multitasking / Cross functional teams : Train your key staff in other functions, handle projects by CFTs.

Process approach : Map every process and simplify

to reduce variations, waste, cycle time, e.g. ISO 9001

Systems approach : No processes are stand alone,

all are interlinked. Adoption will enhance value.

Have long term philosophy : Do SWOT analysis,

identify and grab your opportunities , define VMV

collectively and work on goals as a team.

Multitasking / Cross functional teams : Train your

key staff in other functions, handle projects by CFTs.

Excellence unLimited, Rajkot ISO 14001 OHSAS 18001 ISO 9001 etc. TQM, TPS, WCM, TPM, Six Sigma etc. National Quality Awards Based on MBNQA, EFQM and Deming Award Build your capabilities by Systematic approaches . . Tools like 5 S, SPC, COPQ, PDCA, Best Practices Etc.

Excellence unLimited, Rajkot

Excellence unLimited, Rajkot Wish you all the Best Thank You

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