Implementing Tata Business Excellence Model in Tata Steel

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Case Details:

Case Code : OPER021
Case Length : 15 Pages
Period : 1996 - 2002
Organization : Tata Steel
Pub Date : 2003
Teaching Note :Not Available
Countries : India
Industry : Steel

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Achieving Business Excellence through TBEM

The significance of 'organizational excellence'⁶ was not much appreciated in the corporate sector as late as 1982, when Thomas Peters and Robert Waterman's book, 'In Search of Excellence' was published. Earlier, organizations focused on a single aspect to improve quality, for example, improving product and process, or systems quality.

However, focusing only on a single aspect was considered insufficient in improving the overall organizational performance. Peters and Waterman proposed that there was a need for a broad-based business excellence model for businesses that should focus on an organization-wide thrust to improve quality.

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In 1987, Malcolm Baldrige proposed a business excellence model for achieving organizational excellence in quality management. Companies that successfully adopted the model were given the Malcolm Baldrige National Quality (MBNQ) Value Award, introduced in the US in 1988. This award was conferred exclusively on the US-based companies.

Further to the above developments, the Tata Group introduced the Tata Business Excellence Model in 1996. By implementing TBEM⁷, the management of the Group aimed at bringing about organizational transformation, which was necessitated by the rising global competition. The objective of TBEM was to improve the performance and efficiency of the Tata Group in various business areas and to enable them to successfully overcome the global competitive challenges. However, the management felt that the attitudes and perceptions of people had to be changed first before a major change could be brought about in the functioning of the organization.

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1] The excellence achieved by integrating or synergizing all the areas of business – processes, systems, technology, productivity and so on. It focuses on the holistic performance of the organization, rather than the performance of a part of the organization.

2] The TBEM framework was the brainchild of G. Jagannathan, CEO, Tata Quality Management Services (TQMS). He was an alumnus of the Indian Institute of Technology (IIT), Madras. Jagannathan was associated with the Tata and its other group companies for about two-and-a-half decades, before he joined TQMS as the CEO in August 2000.