TATA motors case study

“TATA Motors Commercial Vehicle Business Unit enhances balanced scorecard with COVENARK® STRATEGIST”.

Tata Motors is the largest and most prominent market leader in the manufacture of commercial business vehicles in India. In the year 2000, its Commercial Vehicles Business Unit (CVBU) suffered its first loss in its more than fifty years history. This loss was massive. It was in the tune of Rs. 108.62 Million. This prompted Tata Motors to take a profound look into itself; to find reason in this debacle.

Subsequently, the executive director of CBVU, Mr. Ravi Kant, called for stringent cost cutting across unit operations, supported by more effective formulation and execution of strategy. To augment this process, the management of Tata Motors resolved to adopt the Balanced Scorecard and Performance Framework as the key tool in the endeavour to rebuild the Organisational Performance Chart. The challenge here was to undertake deployment of the Balanced Scorecard across all the functional units and departments of the CBVU.

Soon, however, with the process underway, the real problem revealed itself. It turned out that the manual nature of the review procedures of such a huge structure was well neigh impossible, being, at best, extremely difficult to implement and incredibly time consuming. A watertight solution was needed; quickly. After further examination of the situation, a decision was taken to implement a Balanced Scorecard Automation Tool that would centralise, integrate and collate the data, providing rapid review and analytical functionality and presenting a rapid and comprehensive one view picture of organisational performance.

Commencing this process, the CVBU management reviewed many solution providers and evaluated each of them upon the basis of a variety of diverse factors. At the end of this exhaustive process, a solution was decided in the form of COVENARK® Strategist, a prominent Balanced Score Card Automation Tool developed by MPOWER Information Systems to integrate with the existing ERP and legacy systems with the help of data integration suite.

The results were immediate and spectacular. Within two years of this, CVBU had turned over to register a profit of Rs. 107 Million from the loss of Rs. 108.62 Million, accounting for a whopping 60% of TATA Motors inventory turnover. The success path of Balanced Score Card did not stop here. In the beginning CVBU has started the Balanced Scorecard with only Corporate Level Scorecard; at this time they have expanded it to six Hierarchical Levels with three hundred and thirty one Scorecards, additionally looking forward to proliferate it to the lowest level of organisational structure. In this way, MPOWER, through COVENARK® Strategist played a vital role in the success story of TATA Motors CVBU.

“TATA Sons BPO – E2E Serwiz Solutions uses the balanced scorecard in an innovative way with COVENARK® STRATEGIST”.

Overview:

The TATA Sons BPO – E2E Serwiz Solutions is one of the biggest and fastest growing BPOs in India. E2E Serwizsol caters to the entire process outsourcing for the TATA Group encompassing 91 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals as well as external clients.

E2E Serwizsol, being a very people and process oriented organization needed a very innovative, integrated solution to automate the balanced scorecard. The reason behind this was that the entire performance measurement of the organization was based on the performance of the employees and processes. The objectives, measures and initiatives were directly linked to the key result areas of the employees. They needed a very comprehensive yet automated BSC review meeting procedure for strategic evaluation. Secondly they needed a very well defined, automated KRA structure for measuring employee performance. This was the least of the challenges, as the difficult part was to combine the two procedures above and come up with a seamless STRATEGY & HR evaluation structure as a part of the BSC.

MPOWER helped to customize a new review meeting procedure by incorporating the BSC related objectives as well as other key review factors in one module. This module was then linked to the KRA component of the employees. It was made accessible to the key decision makers, throughout the organization. It allowed them to do the strategy deployment; review and KRA evaluation at one go using the COVENARK® STRATEGIST in one seamless process.

“Premium Energy Transmission incorporates an end-to-end solution for their strategy deployment using the balanced scorecard. MPOWER is the catalyst.”

Premium Energy Transmission Limited is part of a large conglomerate - The BM Thapar Group. The company manufactures industrial gearboxes and fluid coupling. PETL is one of the leading Indian manufacturing companies providing quality power transmission to the Indian and global market. Having a strong presence in India with four state-of-the-art manufacturing set-ups across the country; PETL for strategic reasons intends to be truly a global company by setting-up a manufacturing unit abroad.

PETL has an ambitious plan to be a global leader in their respective domain and achieve a significant growth in the turnover and market share by the year 2010. It drove the top level management to look-out for a time proven framework that would enable PETL to achieve the set business objective within the stipulated time frame. After a lot of research and understanding of various frameworks available they realized that Balanced Scorecard structure would be appropriate as it could be used as a double edged sword for strategic deployment and performance management tool.

PETL evaluated different solution providers in terms of consultancy as well as automation. PETL chose MPOWER over all others because of the fact that MPOWER could provide an accurate, end-to-end solution, suited to their requirements.

MPOWER provided consultancy for balanced scorecard creation through Mr. Nigel Penny, Claritas Asia. Mr. Penny used state-of-the-art techniques to generate a robust, strategy deployment structure comprising of the PETL corporate scorecard as well as 8 functional level scorecards.

Based on Mr. Penny’s past experience, PETL’s idea of BSC automation received a boost. They realized that the success of the balanced scorecard requires rapid implementation and ease of maintenance because the managers at all level have a lot of work pressure - already. The main reason for failure in balanced scorecard is the difficulty in collecting, managing and reporting data. Early automation of these processes is the key to success in any project.

MPOWER provided the automation tool, COVENARK® STRATEGIST, to automate this comprehensive and intricately linked balanced scorecard structure. It helped the top managers of PETL to successfully position their strategy across the organization and reap the benefits of a seamless strategy deployment and performance measurement solution.

MPOWER, once again was a catalyst in taking an organization on a roadmap to success using its expertise in the balanced scorecard zone.

“USV India Ltd. incorporates an end-to-end solution for their strategy deployment using the balanced scorecard. MPOWER is the catalyst.”

A leading health care company with the following areas of focus: Branded Generics, Active Pharmaceutical Ingredients (APIs) and Bio-similars. Sixty-seven percent of the business is contributed by the India operations and the rest by export of APIs and Branded Generics.
USV ranks 21st (Source: ORG; Dec, 2005) in the pharmaceutical industry, with number 1 position in diabetes and a rank within the top 10 in cardiovascular disease segments. They have an active in-licensing program to enhance product portfolio. The strategy is to introduce innovative specialized products while retaining a focus on brand building.

To continue to be recognized as a reliable provider of healthcare products and services by customers the world over.
To provide superior value to the customers and stakeholders, by being innovative, focused and specialized.
To create and sustain a work environment that values people, promotes learning, nurtures innovation and leads to collective excellence.

After a lot of research and understanding of various frameworks available they realized that Balanced Scorecard structure would be appropriate as it could be used as a double edged sword for strategic deployment and performance management tool.

USV evaluated different solution providers in terms of consultancy as well as automation. USV chose MPOWER over all others because of the fact that MPOWER could provide an accurate, end-to-end solution, suited to their requirements.

MPOWER provided consultancy for balanced scorecard creation through Mr. Nigel Penny, Claritas Asia. Mr. Penny used state-of-the-art techniques to generate a robust, strategy deployment structure comprising of the USV API division scorecard.

Based on Mr. Penny’s past experience, USV’s idea of BSC automation received a boost. They realized that the success of the balanced scorecard requires rapid implementation and ease of maintenance because the managers at all level have a lot of work pressure - already. The main reason for failure in balanced scorecard is the difficulty in collecting, managing and reporting data. Early automation of these processes is the key to success in any project.

MPOWER provided the automation tool, COVENARK® STRATEGIST, to automate this comprehensive and intricately linked balanced scorecard structure. It helped the top managers of USV to successfully position their strategy across the organization and reap the benefits of a seamless strategy deployment and performance measurement solution.

MPOWER, once again was a catalyst in taking an organization on a roadmap to success using its expertise in the balanced scorecard zone.