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Last week, we explored the crucial role of building organisational capabilities in successfully
implementing our strategy. In order to achieve this, we need to focus on developing the
capabilities of our own people and enhancing our organisational structures. In addition to
developing the skills and expertise of our workforce, we also need to make necessary changes to
our organisational structures to support our goal. This week,

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we will delve into examining our internal operations to identify areas where we can make
improvements and streamline processes to increase efficiency and effectiveness. There are five
learning objectives in these chapters, and let us explore each of them in the following slides. It is
important to recognize that resources are critical factors in effective strategy executions. We need
to ensure that we have sufficient and appropriate

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to support our initiative and that we are effectively managing these resources to achieve our
goal. Let us look into each point in the following slides. Effectively managing resources is crucial
for success in any organisations. Allocating too little funding may not yield significant
advantages, while allocating too much can lead to resource wastage. To address this challenge,
we should adopt the

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20 rules. These rules suggest focusing 80% for our resources on activities that generate desired
outcomes, while the remaining 20% should support these outcomes. Practically, this means
prioritizing the 20% of activity that significantly impacts our desired outcomes when allocating
resources to our value chain activities or other initiatives. This approach reduces the risk of
wasting resources of less than 20%.

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critical activities and enhance our chances of success. All activities and actions in an organisation
should be meaningful and contribute to strategic objectives. For example, employee training is
essential for developing capabilities that provide a competitive advantage but can be costly.
Therefore, it is necessary to focus on both the investment cost and the desired outcomes. When
investing in employee training, it is crucial to understand the significance impact.

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the organisation aims to achieve. These include considering whether employees will experience
higher satisfaction, positive behavioural and attitudinal changes, or contribute to increased sales
volume, productivity and qualities. By setting clear expectations and goals for employee training,
we can measure its effectiveness and ensure it brings the intended result. The key is to focus on
the significance impact training will have on the organisation's

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rather than just the investment cost. It is not about how much you invest in the training, what
matters is the impact of training has on the organizations. Apart from resource allocations,
another important aspect to consider is the institution policies and procedures. First, providing
top-down guidance. For example, the companies could implement a policies that requires all
employees

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to greet customers within 10 seconds of their arrivals in the store, and to provide assistance with
any questions or concerns they may have. These policies provide clear guidance on what is
expected of employees in terms of customer service, which can help to ensure consistency in how
customers are treated across different store locations. Second, ensuring consistency. For example,
the company could develop a customer service checklist

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that employees are required to complete at the beginning and end of each shift. This checklist
could include items such as ensuring that all customers' areas are clean and tidy, restocking
shelves and ensuring that all customers have been assisted. By standardizing these procedures,
the company can help to ensure that customers receive a consistent level of service regardless of
which store they visit.

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For example, the company could implement an incentive program that rewards employees for
receiving positive feedback from customers. By doing so, the company creates a culture where
employees are motivated to deliver excellent customer service, which can lead to improved
customer satisfaction and loyalties. Another way to promote good strategy execution is
employing process management tools to drive continuous improvement in HAL.

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value chain activities are performed through the three powerful business process tools. One of
the powerful business process tool is business process re-engineering involves radically
redesigned and streamlining how an activity is performed with the intent of achieving quantum's
improvement in performance. Business process re-engineering, which is also known as digital
transformations, process reinvention or change management.

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Regardless of the term used, what is important is that they share similarities in terms of their
elements. One of these elements is customer focus, which involves enhancing customer value
propositions and designing processes that increase customer value. Another important
consideration is cost advantage, conducting a thorough business needs analysis.

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on cost advantage. Cost advantage doesn't just refer to cost reduction, but also to reducing costs
by analysing the value chain and identifying which activities can be salvaged. The team involved
in this process should not only include functional experts in business process re-engineering, but
also non-expert and outsider such as customers, suppliers and distributors. These allow for
different perspectives to be considered in order to

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and they identified the important and non-important processes. Continuous improvement is
essential for any process. It is not viable to use a process for decades without improvements. To
achieve this, change management is critical. Business process re-engineering involves radical
redesigning, and it requires a willingness to change. Lastly, it doesn't mean making the process,
but however, it doesn't mean that making the process more complex.

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The goal should be to simplify the process while still satisfying customers and reducing costs. In
addition to this, investing in IT infrastructure is crucial to streamline the process and maintain the
continuous improvement. Informations technology is a crucial element that enables effective
operations. What is the difference between business process re-engineering and total quality
management?

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In short, BPR and total quality management, in short, we call TQM, are both approaches to
improve business performance, but they have different focuses and methods. BPR is a
methodology that aims to completely redesign and restructure a company's processes, system
and organisational structure to achieve significant improvements in efficiency, effectiveness and
competitiveness. It involves analysing and rethinking every aspect of the business.
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of how the business operates and using technology and innovative techniques to optimize
processes and achieve breakthrough performance improvement. BPR often include radical top-
down approach that requires significant changes in the company's culture and mindset. On the
other hand, TQM is a management philosophy that emphasizes continuous improvement in all
aspects of the organization with a focus on meeting or exiting customers' needs.

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and expectation. DQM involves a holistic approach that involves all employees in the
organization and it emphasizes the importance of data analysis, statistical process control and
continuous improvement method such as Kaizen. DQM focuses on improving processes,
reducing waste and enhancing customer satisfaction. In summary, BPR focuses on radical process
redesign to achieve significant improvement while DQM

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focuses on continuous improvement and involvement of all employees to achieve incremental

improvement. When we talk about total quality management, it is important to note that it has
paved the way for many quality management systems, including Six Sigma. Total quality
management includes customer focus, process orientation, continuous improvement and data-
driven decision

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With Six Sigma, statistical methods are used to improve the qualities of products. When we refer
to statistical method, we aim for a small defects rate, which means we want a high perfections
rate. Ideally, we aim for a zero defects rate.

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The two main methodology used in Six Sigma are DMAIC and DMADV. Let us watch the video to
explore the difference. Imagine you've been tasked with a really important project at work. The
company you're working for produces luxury cars. The production numbers are going down, and
a lesser number of cars are getting manufactured each day. There also seems to be an issue with
the quality of the windshield wipers that go on these cars. The question you are faced with…

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Is there a way for the company to stop the stall in production and increase the production per
day from 1,000 to 2,000? Also, is there a way to find out what's causing the drop in the wiper
quality? There is Six Sigma. Six Sigma gives you the tools and techniques to determine what's
making the manufacturing process slow down, how you can eliminate the delays, improve the
process, and fix further issues along the way.

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The concept was introduced in 1980 by Bill Smith while working for Motorola. Since then, Six
Sigma has seen worldwide adoption. Six Sigma aims to reduce the time, defects, and variability
experienced by processes in an organization. Thanks to Six Sigma, you can produce a defect-free
product 99.9996% of the time, allowing only 3.4 errors per 1 million opportunities.

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Six Sigma also increases customer loyalty towards the brand, improves employee morale, leading
to higher productivity. Six Sigma has two major methodologies, DMAIC and DMADV. Let's look at
the first methodology. DMAIC is an acronym for define, measure, analyze, improve, and control.
Let's have a look at each of these stages individually and how it relates to your earlier problem.

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In the define phase, you determine what issues you're facing, what your opportunities for
improvement are, and what the customer requires of you. Here, you look at the process as a
whole and determine the issues with the manufacturing process. In this case, finding out why the
cars had varying windshield wiper quality and how to optimize the current process to
manufacture more cars. In the measure phase, you determine how the process is performing
currently in its unaltered state.

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you determine the current number of cars that are manufactured in a day. In the current scenario,
1,000 cars are manufactured in a day, and each of these cars are outfitted with a pair of
windshield wipers by one of 30 machines used. Some of the metrics measured are how many cars
are produced in a day, time taken to assemble a car, how many windshield wipers were attached
in a day, time that takes them to do so, defects detected from each machine on assembly
completion, and so on.

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Following this, in the analyze phase, you determine what caused the defect or variation. On
analyzing previous data, you find out that one of the machines that installed the windshield wiper
was not performing as well as it was supposed to. Production was taking longer since the car
chassis was being moved across the different locations slower, as cranes had to individually pick
and drop the frame. This was because the wheels were attached to the car only in the last stage.
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Next, in the improve phase, you make changes to the manufacturing process and ensure the
defects are addressed. You replace the faulty machines that installed the windshield wiper with
another one. You also find a way to save time by attaching wheels on the frame in the initial
stages of the manufacturing process, unlike how it was done earlier. Now the car can be moved
across the assembly area faster. And finally, in the control phase.

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you make regular adjustments to control new processes and future performance. Based on the
changes made, the company was able to reduce production time and manufacture about 2,000
cars a day with a higher quality of output. DMAIC is one of the most commonly used
methodologies in the world. It focuses on improving the existing products of the organization.
The second methodology is DMADV, which is short for Define, Measure, Analyze,

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design and verify. It is used when the company has to create a new product or service from
scratch. It is also called DFSS or Design for Six Sigma. Let's take the scenario where the company
decides to build a new model, a sports car. In the define phase, you define the requirements of
the customer. Based on inputs from customers, historical data, industry research, you determine
what you need to ensure your car becomes a success.

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The data collected indicates customers are drawn to cars which can achieve more than 150 miles
per hour. Customers are also more inclined towards cars which have V6 engines and an
aerodynamic frame. Then, in the measure phase, you use the customer's requirements to create a
specification. This specification helps define the product in a measurable method, so that data
can be collected and compared with specific requirements.

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are the top speed, engine type, and type of frame. In the analyze phase, you analyze the product
to determine whether there are better ways to achieve the desired results. Areas of improvement
are determined and tested. Based on the analysis of the prototype created in this phase, you find
that the product satisfies just about all of the customer requirements, except the top speed. So
research begins on an aluminum alloy.

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that could possibly meet the speed requirements of the customer. Following this, the design
phase, based on the learnings from the analysis phase, the new process or product is designed.
Revisions are made to the model and the car is manufactured with the new material. The analysis
phase is repeated based on the new design. You also bring a focus group and see how they
receive it. Based on their feedback, further changes are made. And finally, in the verify phase.

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you check whether the end result meets or exceeds customer requirements. Once you launch
your brand new sports car, you collect customer feedback and incorporate it into future designs.
And guess what? Your customers are loving the new design. And that is DMADV for you. Six
Sigma has also found success in a number of different industries. The petrochemical, healthcare,
banking, government and software

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are some of the industries that have utilized the concepts of Six Sigma to achieve their business
goal. Let us say that a manufacturing company has received complaints from customers about
the qualities of their products. Which methodology will you use? The DMAIC methodology is
used to improve existing processes while the DMADB methodology is used to create new
products or processes that meet

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customer requirements. The tables provide a quick reference to the differences between the two
methodology, including their focus, approach, and what they are used for. Can you find the
answer here?

Enterprise Resource Planning, in short, we call ERP. Systems are one such technology that can be
very useful. One of the well-known ERP service provider include SAP. ERP system, unite all.

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available information within a company, particularly information related to business activities

such as stock purchasing and inventory management. All business-related information including
human resources, marketing, finance and inventory is available in our ERP system. It serves as a
data bank for the company. Big data, on the other hand, refers to the collection of the
unstructured data, such as information from social media platforms.

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like Facebook and Instagram. Integrating ERP with big data is important because it allows
businesses to not only obtain business-related information, but also understand their customers
better. With big data, companies can anticipate customer needs and make better business
decisions. In order to execute our business operations efficiently and execute our strategy, it is
crucial to have an information system.

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that include big data and RFID technology. Big data enable us to collect and analyze vast amount
of unstructured data from social media and other sources to understand our customers and their
needs. By integrating big data with our ERP system, we can make informed business decisions.
RFID technology, which stands for Radio Frequency Identification, is important in the
manufacturing sector

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as it provides accurate tracking of inventory. It can be used for inventory control and can enhance
our information system. Therefore, investing in this technology is important for our business
process re-engineering and total quality management. It is essential to have a team responsible
for this initiative to ensure their success.

While we may have acquired a large amount of data,

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The key issues lies in how we process and analyze it. Although we can use artificial intelligence,
AI, to assist us with the analysis, we should not solely rely on it. Ultimately, it is humans who are
responsible for interpreting the data and making decisions based on their insights. Therefore, it is
crucial to have a clear understanding of what information we require from the data in order to
effectively analyze it. Let us explore each point.

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in the following slides. To motivate employees, financial incentives are not the only options. We
can use the non-monetary approaches to enhancing motivations. One of it will be provide
attractive perks and fringe benefits. Offering benefits such as flexible work hours, health and
wellness programme or child care support can boost employee satisfaction and motivations.

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For examples, a company might provide gym memberships or remote work options to help
employees maintain a work-life balance. Second, give awards and other forms of public
recognition. Recognising employee's achievement through awards, certificates or public
acknowledgements can significantly boost morale. For instance, an employee of the MUN
programme can highlight exceptional performance and motivate others.

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Third, rely on promotions from within whenever possible. Promoting employees from within the
organisations encourage career growth and shows that the company values its staff. For example,
promoting a dedicated team members to a managerial position can inspire others to work
harder, knowing there are opportunities for advancement. Fourth, invite and act on ideas and
suggestions.

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Encouraging employees to share their ideas and suggestions, and then acting on them, can
create a sense of ownership and involvement. For example, implementing a suggestions box or
holding regular brainstorming sections can lead to available contributions and enhance
motivations. Create an atmosphere of caring and mutual respect. Fostering a supportive and
respectful work environment can enhance motivations and loyalty.

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For instance, a company could establish mentorship programme or team-building activity to

strengthen relationship among employees. State the strategic visions in inspirational terms.
Communicating the company's strategic vision in an inspiring way can motivate employees to
work towards common goals. For example, a CEO might share story of the company journey and
future aspirations during a town hall meeting.

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or a meeting or the annual meeting instilling a sense of purpose in the workforce. Share the
firm's critical information with employees. Transparently sharing important company information
helps employees feel trusted and valued. For example, regular updates on company's
performance and strategic initiatives can help employees inform and align with the company
goal. Lastly, provide a comfortable working environment.

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creating a pleasant and comfortable work environment can improve employee satisfaction and
productivity. For instance, ensuring ergonomic office furniture, good lighting and a clean
workplace can make employees feel more at ease and motivated to perform their best. Therefore,
by integrating these non-monitoring approaches, organizations can enhance motivations and
create a more engaged and productive workforce.
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While many organisations rely on the carrot and sticks approach of reward and punishments for
performance, it is important to consider other forms of motivations and recognitions beyond
financial incentive. Instead of solely focusing on achieving profit, it is important to strike a
balance between achieving business goal and considering the well-being of employees. As an
employer, it is crucial to regularly reflect

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on the performance of your employees and the qualities of the human capitals they bring to the
organisations. When employees are not meeting expectations, it is important to examine what
actions can be taken to enhance their performance and intellectuals' capital. This is crucial for
promoting successful strategy executions. In order to achieve the desired outcome, it is
important to set challenging goals that are also achievable.

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to achieving the right outcomes means that then, an organization should reward its employee
based on their performance and the result they achieve, rather than just their effort or time spent
on the task. This approach helps to create a result-oriented work environment where everyone is
focused on achieving specific goals that align with the organizational strategic objective. For
example, suppose a sales team has a goal of increasing revenue of 20% over the next quarter,

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The team leaders can set strategically relevant, specific and measurable stretch performance goal
for each salesperson, such as achieving a certain number of sales, acquiring new customers or
increasing sales to existing customers. The goal should be challenging, but achievable and
aligned with the team's overall revenue target. Each salesperson's performance goal can be
linked to the team revenue target.

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and progress can be tracked regularly. At the end of the quarters, the team leaders can revolt and
recognise superior performance that contributed to achieving the team's revenue target. This
could include bonuses, promotion and other incentives that motivate employees to strive for
excellent and continuous improvement. By linking rewards to achieving the right outcome, the
sales team becomes more result-oriented and focus on achieving specific goals.

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that contribute to the success of the organisations. This approach helps to create a culture of
excellence where employees are encouraged to set high standards for themselves and work
collaboratively to achieve the organisational strategic goal, strategic objective.