Tuesday, January 8, 2008

Tata Business Excellence Model

In the pioneering work ‘In Search of Excellence’, first time focused was shifted towards achieving organizational excellence and making an organization ‘world-class’.

All the developments in management science, such as TQM, BPR, ISO 9000, SPC, benchmarking focused on only aspect of business. There was a need to develop the systems to improve overall organizational performance.

First came the European Foundation for Quality Management (EFQM) and then Malcolm Baldrige National Quality Award (MBNQ) in 1987 in US for quality management and quality achievement.

Following these, Tata introduced TBEM model in1994 and gives JRDQV award for business excellence. Tata group companies are expected to attain and maintain a minimum standard vis-à-vis this model to

One of the purposes to Tata Brand Equity and Brand Promotion agreement is to enhance the Tata brand equity by achieving world class levels of performance. The TBEM model provides that common framework.

TBEM comprises eleven core value concepts for quality excellence. These are: Visionary leadership, organizational and personal learning, agility, valuing employees and partners, managing for innovation, customer drive excellence, focus on future, management by fact, focus on results and creating value, social responsibility and citizenship and system perspective.

There are seven chapters in the TBEM assessment with a potential of 1000 points. These are:

Leadership (125 pints): It emphasizes how senior leaders address values and performance expectations etc.
Strategic planning (85 points): It examines hoe organizational strategic planning is done and implemented.
Customer and market focus (85 points): How the company keeps track of customers’ expectations and preferences and builds customer relationship.
Measurement, Analysis and Knowledge Management (85 points):
Human Resource Focus (85 points)
Process measurement
(85 points): Customer focused design, product and service delivery and supplier and partnering process
Business Results (450 points): Tracks organizational performance in key business areas

JRDQV award is given to a Tata Group Company when the TBEM assessment score is 600 points out of a potential of 1000 points. So far only Tata Steel and TCS have received the JRDQV award.

The performance of any unit/division in TBEM scores are classified as given below :
876 – 1000: World Class Leader
751 - 875: Benchmark Leader
651 - 750: Industry Leader
551 - 650: Emerging Industry Leader
451 - 550: Good Performance
351 - 450: Early Improvements
251 - 350: Early Results
0 - 250: Early Development

The process owner of TBEM is Tata Quality Management Services.

Any of the Tata group company signing BEBP agreement needs to score 220 points within 2 years of signing the Tata Brand Equity scheme and adopting the TBEM model followed by 400 points in three years and 600 points in four-year period duration.

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