A report by RBI says that the listed non-financial private companies posted a decline of 10.9 percent in net profit in the first quarter of the current fiscal year. Sales growth (Y-o-Y) continued to decelerate and reached the post crisis low of 2.6 per cent. Decline in sales growth was spread across most of the industries, including motor vehicles, iron and steel, cement, coke and refined petroleum products and electrical machinery and apparatus industries. “Cement, iron & steel and construction industries witnessed significant contraction in EBITDA and net profit,” RBI said. Sales of the manufacturing sector remained almost stagnant with a growth of only 0.8 per cent in the first quarter. India’s GDP growth had slumped to 4.4 per cent in first quarter of the fiscal, slowest in four years. (Source: Indianexpress, Thu, 3 Oct 2013)
A rapid fall in the value of the rupee caused by persistent inflation of the past few years and the high current account deficit of about $85 billion (4.5% of the GDP) are few of the reasons for the current economic slowdown. Some well known economists on the far right prefer to describe the external sector situation as worse than the 1991 economic crisis India had faced….continued.
Time has come when companies should start evaluating (current state assessment) their progress and process in order to survive the turmoil. It is a company-wide effort at continuous quality improvement of all processes, products & services through total employee involvement that results in increasing customer satisfaction and loyalty, and improved business results. Looking at the current scenario what is required is to adapt & carry out a set of systematic activities by entire organization to achieve its objectives. But the point to be kept in mind is an organization should carry out those activities only which is necessary for its business & which are unique to its business and scale and the one’s that adds value. Long-term success requires daily improvements, no matter how small. No journey can start without a ROADMAP. Two things has to be identified, Current State & Desired state. Assessments does precisely this and results into a roadmap. The assessment helps the businesses to identify the current operational issues, wastes in the processes, etc. How is the organization doing? What are the operational challenges? Do the people have the right skills? are the kinds of questions that are answered.
The objective of assessments is to find out all possible reasons/obstacle that are holding you back from attaining your goals and to design a roadmap to address such obstacles.
- To understand organizations’ business needs/ priorities
- To ascertain current Strengths & Weaknesses
- To understand the current challenges before the organization
- To measure the current level of Key Performance Indicators (KPIs), and compare them with ‘High Performance’ benchmarks
- To identify potential for improvement in the 1st phase
- To find opportunities for some quick wins that can gain credibility for the Kaizen/ OE processes within the organization
- To set improvement targets
- To create a possible roadmap to achieve the desired improvement targets
The only objective of any organization opting for assessment is to find out improvement potential and become Faster, Better & Cost efficient.