A Leading Tyre Manufacturer in India with a turnover of US $500 Million and Head Office in Delhi, 3 Manufacturing Plants.
Company had looked at the executive manpower internally twice earlier (3 yrs back and 10 yrs back) A Year before this assignment was taken up, the Management had set up an internal team which visited all the locations and met all the key managers to influence and reason with them to convince them for a manpower reduction.
The VCMD of the company was convinced there is further scope, and leading multinational consultants were invited to submit proposals. CHR was the only India centric brand. Presentations were made to the top management and after multiple rounds of negotiation, the work was awarded to us. The assignment commenced with a one day presentation to the 16 members of the top management team at New Delhi, covering 22 step methodology (Annexure I) and 11 concepts of BPR (Annexure II)
The same presentation in an abridged form was repeated at all the factories, in batches of 50 – 70. Thus s total of 20 presentations were made covering the entire management staff of around 1200 members. At each location, CHR provided a team of 3 – 5 consultants depending upon the size of the location, and the company decided to spare equal number of people for the assignment.
The company was structured around typical functions, originally. There were around 14 major functions and around 45 sub functions. We worked on creating a Process based Organization, by drawing a value build up diagram, and critical value transfer points were identified. The entire set of activities between two critical value transfer points were grouped into a Business Unit. CHR’s other criterion were also considered while defining the Business Units. Some of them being, clear definition of convergence / divergence point, inputs / outputs are identifiable without any overlap, the unit can exist as an independent business, profit and loss for the unit can be calculated, number of people forming the unit, physical size of the unit etc. After the BUs / SSUs were finalized, based on technical and economic criterion, all the functions were put inside the unit.
For each BU / SSU, CHR did a complete organization design using the 11 concepts.
Post each presentation a 14 field CHR template was distributed which was to be filled by each of the executives directly on the computer. The entire mass of data was thereafter analyzed by CHR team along with the management representatives.
This was followed by direct shiftlong observations of the executives at their workplace (This techniques is called Production Study for manpower assessment),
Work sampling was carried out for certain groups of activities to understand the level of occupancy and various types / causes of non value adding activities and idle time,
Group timing technique was adopted where very high number of observations were required at very short interval.
A rigorous exercise was carried out to finalize the heads for BU / SSU, wherein a competency model was also agreed with the top management.
Once all the BU / SSU heads were finalized, findings were shared and mutually agreed with them. During this phase, the manpower requirement in each BU / SSU was also finalized with the BU / SSU heads.
Post finalization of manpower, a comprehensive competency model was developed for the selection of the team members. Since, multiple functions were converging into a Business Unit, a lot of emphasis was given to Functional competencies.
A comprehensive 17 component manual was prepared for each of the BU / SSU (17 components model is as per Annexure III). A presentation was made to each BU / SSU team, detailing the manual and the new roles that each person has to perform in the proposed Process Based Organization Structure.
All the BUs and SSUs went live sequentially, so as to ensure stability within the factory. As and when the BUs / SSUs went live, CHR assisted the team members understand their new roles and the linkages.
There were regular audits of the BUs / SSUs by the client’s top management along with the Senior Director of CHR. These reports were presented to the VCMD on a regular basis to ensure that the transition was smooth and that the changes have been well accepted within the organization.
The transition from a Function Based Organization to a Process Based Organization resulted in a reduction of 33% on manpower cost for the client.