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Meeting with ITC Agri Business Leadership

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Accelerating Investments in India

Building Assets for the Future• ITC has charted an investment programme of nearly Rs.

25,000 crores over the next 5-7 years in support of the need to raise the pace of investment in the Indian economy.

• At the current moment over 40 projects, large and small, are in various stages of implementation cross the country.

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Agri Commodities & Rural Services

• Farmer empowerment through e-Choupals

• This initiative now comprises about 6500 installations covering nearly 40,000 villages and serving over 4 million farmers.

• Over the next 5 years it is ITC's Vision to create a network of 20,000 e-Choupals, thereby extending coverage to 100,000 villages representing one sixth of rural India.

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Choupal Saagar & Pradarshan Khet

• 24 'Choupal Saagars' have commenced operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural retailing initiative to establish a chain of 100 Choupal Saagars in the near future

Choupal Pradarshan Khet• To help farmers enhance farm productivity by

adopting agricultural best practices. Started in 2005-06, This initiative, has covered over 70,000 hectares and has a multiplier impact and reaches out to 1.6 million farmers. To reach out to 4 million farmers

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Choupal Haat

ITC – ABD in its 2nd year has successfully been able to conduct 6000 events in 4 states – Uttar Pradesh, Madhya Pradesh, Maharastra and Rajasthan, reaching almost 5 million consumers.

The plan is to scale up these events from existing 100 districts to about 500 districts in other states to be able reach 20 million consumers

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Competitive Advantage

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Business Process Excellence - SOPs

• Standard Operating Procedures for ITC Agri Business is continual process• Process Innovation started : 2005, ending 2012 (Kriya – implementation stage, through games, quiz, prices, etc)• SOPs in place : 100 (developed over 20-30 yrs), Scope: 8 states, 150 hubs, 250 Warehouses, 900 people• Operations team : Warehouse (250 x 3) avg age (25-28), 300 field personal, 25 supervisors, 50 senior personnel, 25-

30 people at HQ • Technology: SOPs exist on internal servers, plan for tablets to be given to teams at operation level for following

processes• Audits : Operational Audits by Audit committee every year, period (4-5 months), Risk based

Challenges : • Operations teams to understand purpose and objective of SOPs, the awareness (maybe skills training required)• Are there best practices which can be innovative and simpler to follow• Gap in implementation and following the SOPs• Better ways for SOPs to be followed if they are linked to KRAs• Monitoring compliance of SOPs

• Common Practices to enable multiple service offering through Sustainable value platform (choupal haat)• Goal : to develop and increase market service and explore opportunities through same channel – Choupal Haat

• Goal = “Supply Chain Efficiency” and best practices/benchmarks across ITC Agri Business

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Summary of Discussions

• Audacious goals and targets for the management• Scalability of existing agri services / initiatives• Visibility of current initiatives / projects• Constant follow up and review of progress• Not enough time for research and trends• Process innovation at each business line• Using existing platform to extend more value add

services to rural markets• Resource management and accountability• Multitasking

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Challenges

• Scale up several times• Lots of projects to

be managed• Constant follow up

and reviews (fire fighting)

• Little time left for learning/upgrading

• Resource contention

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Scale up with lots of project to be completedApply a lot of management attention

Constant review and follow up on every project

Complete more projects on time in full with in the agreed budgets

Prioritize and focus on selected few

Objective (Quality, Speed, Economy)

Criteria

Actions

Solving The Core Management Dilemma….

Conflict

How can we take on

aggressive targets, yet

achieve them reliably?

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Dilemmas aren’t conflicts between right and wrong; they are conflicts between two rights- Georg Hegel

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Fundamental Assumption• The current state of any organization is an

effect of the decisions of human beings.• The main thing that is controlling the rate at

which a company grows and it’s strength and stability, is how much attention Top Management can put on

1. The quality of the decisions they make2. The speed they can respond to issues

inside and outside of the company.

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Fundamental Assumption

“Management Attention” is the true constraint of

most organizations… not “bad management”

Precious little time to accomplish many things

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Free up time to focus on the few key things

How often is Top Management interrupted on a

day-to-day basis??

ZUBIN POONAWALLA 15The challenge of managing multiple projects, through functional resource management, ismade more complex under the influence of uncertainty.

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Recommendations

• We must recognize that the most valuable problem to solve is the overloading of Management ( Initiatives Chart )

• We must create a management system to address all these initiatives from the corporate

• In order to effectively manage and have control over the initiatives. We must projectize, prioritize and identify resource constraints.

• Early warning signals must be available to make sure decisions are made swiftly at all levels

• Implement methodologies, system and tools to better manage initiatives and focus to scale up with better resource utilization.

• A 6 week pilot implementation on any one of the service offerings

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Multi-Project Dashboard Top Management

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This can be explained with an example (Another real life case)Notice the number of projects in parallel

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Which contains a sample of staggered final assembly plans with same dispatch dates

Staggered starts will cut bad-multi-

tasking

Formalizing them will cut bad-multi-tasking in E, P &

component/ subassembly Manufacturing also

Some Early finishes will cut pressures

on Quality & Safety

Fewer concurrent final stages will enable

better focus on Quality & Safety

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Single Project Monitoring

The project progress trend is plotted on

the graph

Projects status colors are assigned based on

the status on the graph

Chain Completion % = (Original Chain – Remaining Chain)/ Original Chain x 100

Buffer consumption % = (Buffer Consumed)/ Original buffer x 100

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COO

Agri ServicesHead

Area Manager(Agri services)

Hub Incharge

Field supervisor

Hub Incharge

Area Managers Area Managers

ManagerRural Marketing

New Initiatives Head

Agri specialists Managers

Sanchalaks

Level-1

Level-2

Level-4Level-3

Level-5

Systematic escalation through the system ensures stable priorities

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Let us Now Summarize the CCPM Way of Managing Projects

CCPMPlanning

Multi-Project Cut bad multi-

taskingProject prioritie

s

Release control

Single ProjectCut Student

s’ Syndro

meCut

Parkinson’s LawCut

Integration

losses

ExecutionTask

Manageme

ntUniform,

Stable

PrioritiesRes

ource

assignmentReporting Remainin

g durationEscal

ation/

troubleshootin

g

Relay raceAdvanc

e preparationsCompletion

criteria

Project

Control

Status

measurement

Buffer

Recover

y

POOGI

Reporting Causes

Focusing Improvements