ASSIGNMENT 1

Submitted to

Prof. Hardik Shah

In partial fulfillment of the requirement of the course ON

People Management in Infrastructure Business

By

Hiren V. Patel
Roll No: 12 Date: 12/02/2012

Assignment -I 1. Draw Corporate level BSC for the past organization you worked for. 2. Draw SBU level or Departmental level or HR scorecard for the same organization 3. As one of the execution committee member, what challenges you see in implementing and integrating the selected two score cards. 4. Your proposed interventions/ strategies for effective execution of those two scorecards.

Corporate Level score card:

See it in the detail in the attached Excel File. (But its components are described below) Site Head (President)s Policy: Safety: Sustain and strengthen Process Safety by integrating behavioral safety principles with Reliance Process Safety Management System and emphasis on operational discipline to achieve manufacturing excellence and world class performance.

Customer: Ensure Customer Success by consistently providing high quality and innovative products, processes and services that meet internal, domestic and global customers' demands.

Contribution: In the recessionary environment, face the challenge to improve profit margin with prudent procurement, inventory management, and high reliability, and increased productivity, reduction in variable and fixed cost through disciplined financial control.

People: Excel in human performance through TQM by employee involvement, teamwork, knowledge management, continual improvement, high reliability, and increased productivity, reduction in variable and fixed cost through disciplined financial control.

Society: community.

Inspire and encourage activities for sustainable development and benefit of

Site Head (President)s Objectives: Achieve and sustain LWCFR (Lost Work Case Frequency Rate) Achieve and sustain TRCFR (Total Recordable Case Frequency Rate) performance Achieve ZERO fire incident target
2

Achieve Zero Process related safety incident Monitor and control violation related to operational discipline elements in terms of % compliance Improve internal CSI over the previous year by at least 2% (Depts. to improve it by at least 2% or target 92%, whichever is higher) Reduce customer complaints (Manufacturing & non-manufacturing) over the previous year by 25% (Plants to reduce it by at least 25% or target 0.150 complaints/1000MT, whichever is lower) Improve Financial Contribution (volume, conversion cost, quality, efficiency improvement etc.) wrt budget by 5% Achieve Fixed Cost reduction wrt budget by 5% Achieve Maintenance cost reduction wrt budget by 5% Increase PIO scheme benefit over previous year by 20% Achieve inventory cost reduction over previous year by 20% Achieve Total Employee involvement in improvement activities /best practices (Innovation, QCC, Six Sigma, SGA/CFT, Kaizen, CSR etc.) Achieve Training hours target for Sup and Non Sup employee Manager & Executive released for new projects, businesses & other sites Leaders developed released for new projects, businesses & other sites Increase Productivity (Production MT/Workforce) over precious year Increase CSR initiatives, participation level over previous year

Corporate Departments Policy:

Inspire and encourage activities for sustainable development and benefit of community. Excel in Human performance through TQM by employee involvement, team work, knowledge management, continual improvement, innovation, balance scorecards, strategic maps, six sigma, benchmarking, etc to achieve operational efficiency and growth. In the recessionary environment, face the challenges to improve margins with prudent procurement, inventory management, high reliability, increased productivity, reduction in variable cost through disciplined financial control Ensure Customer Success by consistently providing high quality and innovative product, processes and services that meet internal, domestic and global customers' demands. Sustain and strengthen Process Safety by integrating behavioral safety principles with Reliance Process Safety Management System and emphasis on operational discipline to achieve manufacturing excellence and world class Performance.

Corporate Departments Objective:

Safety & Environment: Role of Whistle-Blower in Highlighting Case of Operational Indiscipline resulting in Compromise of Statutory Provisions. Thus, ensuring 100% Compliance. Focused & Coordinated Effort for Establishment of Disaster Prevention & Management Centre in Hazira Industrial Belt Customer: Improve internal CSI by giving prompt response and dedicated services

Contribution: Effective & Structured representations to Govt. on their initiatives to increase Tax, Charges etc and Thus, to improve Financial Contribution People: Build Structured Knowledge Capital in CADPreparations of SOPs, Case Laws, Media Reports & Record of all Govt GRs, Circulars & Policies Achieve Training hours target for All Employees To Build CAD Project team for execution of Special Projects Increase overall Productivity by efficient work load distribution Society: Increase CSR activities/participation over last year, Partnering GoG to create Social Infrastructure in Rural Areas thru' RRDT

SBU Level scorecard:

In RIL Dahej complex SBU level scorecard for each employee (from Vice-president to engineers and technicians, President and Sr. Vice Presidents were part of corporate level scorecard) was divided in four categories. 1) 2) 3) 4) Quality Focus Special Initiative Learning and development Problem solving and Innovation
4

Now these four broad categories were divided in four more sub categories each with different weights. They were as follow: Sr No. Parameters Score 1 1a 1b 1c 1d Quality Focus Assist Execute Develop Expertise 1-5 6-10 11-15 16-20

2 2a 2b 2c 2d

Special Initiative Individual Team Plant and Organization Society 1-5 6-10 11-15 16-20

3 3a 3b 3c 3d

Learning and Development Self Team Plant Organization capability development 1-5 6-10 11-15 16-20

Problem solving and Innovation

5

4a 4b 4c 4d

Self Team Plant and organization Environment

1-5 6-10 11-15 16-20

Now here more score is assigned at if impact of your effort is at greater level. So score is increasing as impact of your effort increased from Individual to team, team to plant, plant to organization, organization to society.

As one of the execution committee member, what challenges you see in implementing and integrating the selected two score cards.
As I was working in the maintenance department in Petrochemicals plant, I found that BSC was not properly implemented at Dahej complex. RIL has started to measure its performance with the help of BSC at corporate and Hazira complex, but BSC was not implemented at its various other complex like Dahej, Jamnagar, Nagothane, etc. Since RIL has started BT- Business Transformation process to unify all departments and complex across the business, so its measurement was nearly same as far as importance to customer, people and operational aspects were concerned. But these were not properly reflected at SBU level performance measurement. It was not properly established how to quantify employees performance into various BSC categories and goals. Employees were asked to self assess themselves and then HODs were asked to rate their assessment. So outcome of these processes was more towards subjective overall measurement rather than objective specific measurement.

Example: If sub ordinate is doing good job in maintenance with minimizing breakdown time, he will give himself in those sub categories where higher scores are assigned like plant level or society level, but as his work is not related to society level directly, it is
6

hard to quantify his performance wrt to society. But as Boss is happy with his work he will rate his assessment as nearly accurate. So this will not reflect true picture. BSC should align performance measurement with strategy of the organization, but most of the employees were not clear about RILs strategy, people were not clear how their performance is actually measured with BSC. Initially people resisted the system as people have doubt in the new system. While old system was based on Daily-dairy and KRA assessment, they find it is easy to focus on KRA and get financial and career benefits. But as BSC is more broad perspective with organizations strategy alliance it is hard for people to find their true effort and measurement correlation. So basically I find two most difficulties 1) Aligning BSC with all different departments different strategy and with peoples own strategy and objectives. 2) Quantifying BSCs objective aspects for those department and employees who are not directly related to objectives of corporate level BSC like technicians in maintenance department who is not directly related to customers and society.

Proposed interventions/ strategies for effective execution of those two scorecards:

Make each and every employee clear about organizations strategy and how their performance will be measured with BSC. Establish proper method to quantify performance of employees who are not directly related to the objectives of organization and BSC scorecard objectives. Align BSC scorecard at corporate level with SBU scorecard with same methods to measure the performance. At SBU level make two conflicting departments measurement interdependent like operations which want faster maintenance activities with maintenance department

which wants no safety incidents so both dont conflict for their own goals jeopardizing organizations goal.