Integrating HRP with Strategic Plan -- Example

Vision:

Be an industry leader in value creation and servicing packaging needs and creating greener future

Mission :

Service customer requirements of green packaging by offering reliable, cost-effective & value

added tin mill products.

Strategic Goals :

Create and enhance value for the stakeholders through growth and competitiveness. Reach status

of supplier of choice for tin mill products in Asia. Create an exciting and safe work place for our

employees.
 Integrating HRP with Strategic Plan -- Example

Actual Target Results

Vision Stake- Strategic Corporate Strategic Measure Lag / Functional Strategies
Elements holder
KPIs UOM FY FY FY FY FY FY Benchmarks
Challenges Objectives type Lead Reference / Departmental Objectives
14-15 15-16 15-16 16-17 17-18 18-19
E1.1.1 Driving 2nd phase of wellness at workplace for employees incl. contract workers.
E1.1.2 Deploying PSRM committee recommendations at identified critical locations.
E1.1 Drive Safety Lag / 0
Fatalities / LTIFR Nos. Change 1/0.67 0 /<0.60 0/ <0.50 0/<0.35 0/<0.25 E1.1.3 Revisiting material handling SOPs / systems to avoid unsafe incidents.
Excellence Journey Lead (CRC West)
E1.1.4 Securing areas in proximity to boundary wall for exigencies.
E1 E1.1.5 Revisit / Improve coverage of deployment of positive isolation.
Employee, Government and Community

Social well E1.2.1 Completing augmentation of ETL Effluent Treatment Plant.

being Overall % E1.2.2 Implementing Dust Control measures at Boiler / coal yard / dispatch area
E1.2 Achieve Effluent discharge Run Lag 2 <1 0 0 0 Unique
Corporate deviation E1.2.3 Creating a fume free working environment in the TFS process section.
environment E1.2.4 Creating comprehensive roadmap for solid waste mgmt.
citizenship
neutrality.
Inclusiveness Water consumption m3/MT Change Lead 14.41 14.0 12.5 10.0 8.0 Unique E1.2.5 Taking forward recycling of ECL-1 & ETLs (Rinse) liquid discharge.
Carbon emission tCO2/MT Change Lead 0.665 0.62 0.56 0.52 0.50 Unique E1.2.6 Working on energy workshop outcomes.
Compliance to
E1.3 Responsive % Run Lag 100% 100% 100% 100% 100% - E1.3.1 Proactive work for compliance to better than statute / standards / future norms
statutes / norms
governance
CSR Spent Rs Lacs Run Lead 114 139 160 170 180 - E1.3.2 Working on comprehensive plan on CSR / Affirmative Action.
E2 Employee Survey 65% (India Ind.
% Lead - 56 60 62 63 E2.1.1 Skill enhancement by specific training based on gap identification.
Better index (E&O) Avg.)
Change E2.1.2 Maintaining leadership pipeline by implementing recommendations of Hay.
lifestyle E2.1 Enhance Employee Survey 4.63
Index Lead - 4.24 4.26 4.28 4.30 E2.1.3 Innovating thru culture / capability development and incentivizing.
Skill set employee (U) (scale 1 to 5) (India Mfg)
E2.1.4 Working on OFIs from ESS feedback.
Value Creation, Greener Future and Servicing Packaging Needs

mismatch engagement
Employee MT / Emp E2.1.5 Improving service quality (Town / Admin. & Medical)
Multiple Run Lag 186 220 234 273 315 Unique
Productivity /year
options
C1 Quality Complaints 1000 (TSPE, C1.1.1 Continuing drive through CQA initiatives.
PPM Run Lead 1704 1500 1250 1250 1000
Cost effective (Overall) Ijmuiden) C1.1.2 Phase wise modernizing to bridge capability gaps.
Customer

C1.1 Reinforce
Convenience Customer Satisfaction Index 85 TSL (OEM C1.1.3 Branding & Business Promotion Initiatives with Brand owners / Fillers.
customer relationship Change Lag -
Alternatives Survey (0-100) Flat) C1.1.4 Advocacy (end user, brand owners, government, institutions, NGOs).
Greener product Domestic mkt share % Run Lag 44 47 47 47 47 TCIL 49% C1.1.5 Partnering (EO : Pragati; PF CVM; Inventory financing; Solutions)
Domestic Sales MT Run Lag 249475 280000 295000 310000 325000 TCIL 256943
Export Sales MT Run Lag 53335 80000 85000 115000 150000 Unique O1.1.1 Leveraging VM, Distribution channel, printing / coating capability.
O1.1 Scale up to O1.1.2 Derisking export portfolio by diversification in new markets.
sustain leadership Rasselstein O1.1.3 Re-entering E.O. consumer pack (5ltr. 1ltr.), Lube, Decorative paints.
position. Production kTPA Change Lag 319446 360000 380000 425000 475000 Avg. 500kt per O1.1.4 Ensuring systemic compliance to 40 points of Agenda 380k.
two no. of lines O1.1.6 Starting debottleneck / balancing actions for 530+ kt.
EBITDA margin % Run Lag 8 13 12 15 15 -

O1 Prime Yield % Run Lead 92.15 92.5 93.0 93.0 93.5 93 TSPE, 94 NSC
Sustenance Material Yield % Run Lead 88.69 89.50 90.00 90.00 90.25 91 TSPE
Owner

Returns O1.2.1 Continuing drive through MAT / SCG / TQM.

Tin Overspent % Run Lead 21.32 18.50 18.00 17.50 17.00 12% TSPE O1.2.2 Monitoring usage of ETL evaporator and plating practices.
Growth
Value Add over HRC O1.2.3 Contribution improvement through systemic analysis of process cost (packaging,
Rs./MT Run Lag 17864 17000 16750 16500 16250 18179 (internal)
& Tin power, roll) and value addition.
O.1.2 Drive cost
CRM / ETP Process 5007 / 5000 / 5100 / 5200 / 5300 / O1.2.4 Re-structuring based on recommendations of Hay / TSL- PSD.
competitiveness Rs./MT Run Lag Unique
Cost 3229 3250 3350 3450 3550 O1.2.5 Reducing cost of capital (Funding thru internal generation, interest cost reduction
Days 45 days and cash mgmt.)
Gross WC Run Lag 46 < 45 < 45 < 45 < 45 O1.2.6 Proactive action for WCB management.
sales (Board target)
Manpower O1.2.7 Maximization of realization / value addition through secondary products
EOR Change Lead 1722 1638 1622 1560 1505 -
Optimization
Fixed Cost Rs./MT Run Lag 8088 6833 6797 6381 5995 -
Joint development S1.1.1 Joint development of product for market differentiation / new market
Nos. Change Lead 1 2 4 4 5 -
initiatives S1.1.2 Improving stillage quality and strength.
S.1.1 Derive
S1 Procurement cost
competitive % Change Lead - 5 10 - - - S1.1.3 Reducing procurement cost.
Supplier

Value reduction
advantage
Reliability Supplier Satisfaction
Index Change Lag 3.35 3.50 3.60 3.63 3.65 3.5 (TSL) S1.1.4 Developing web based supplier information system.
Sustenance Index (Scale 1 to 4)
S1.2.1 Optimizing vendor base / capability.
S.1.2 Risk mitigation Supply interruptions Hrs. Run Lag 0 0 0 0 0 -
S1.2.2 Partnering with suppliers / service providers.
Integration of Strategy Planning with HRP Tinplate Example

Actual Target
Corporate
Functional Strategies
Strategic KPIs UOM Benchmarks
/ Departmental Objectives
Objectives FY FY FY FY FY FY
14-15 15-16 15-16 16-17 17-18 18-19

Employee E2.1.1 Skill enhancement by

Survey 65% (India specific training based on gap
% - 56 60 62 63
index Ind. Avg.) identification.
(E&O) E2.1.2 Maintaining leadership
Employee pipeline by implementing
E2.1 Survey 4.63 recommendations of Hay.
Index - 4.24 4.26 4.28 4.30
Enhance (U) (scale (India Mfg) E2.1.3 Innovating thru culture /
employee 1 to 5) capability development and
engagement incentivizing.
E2.1.4 Working on OFIs from
Employee MT /
ESS feedback.
Productivit Emp 186 220 234 273 315 Unique
E2.1.5 Improving service quality
y /year
(Town / Admin. & Medical)
 Integration of Strategy Planning with HRP Tinplate Example

ANNUAL MASTER CALENDAR-HRM Division- 2017 - 2018

|| Planned Completed Not Completed
Link to
Functional JOB DESCRIPTION APR MAY JUN JUL AUG FREQ
Strategy
C1.1.3.1.1 Once in 6 Month
C1.1.3.2.1 || Once in 6 Month
C1.1.3.2.2 Skill enhancement || Once in 6 Month
C1.1.3.2.3 || Once in 6 Month
C1.1.3.2.4 || Once in 6 Month
C1.1.3.2.5 Succession Planning || Once in 6 Month
C1.1.3.3.1 || Once in a Year
C1.1.3.3.2
C1.1.3.1.1 || Once in 6 Month
C1.1.3.3.1 Capability Development || Once in 6 Month
C1.1.3.3.2
C1.1.3.3.3 || Once in 6 Month
C1.1.3.3.4
C1.1.3.3.5 Action on TBEM Feedback / OFIs Once in 6 Month
C1.1.3.3.6
C1.1.3.3.7 || Once in a Year
C1.1.3.3.8
C1.1.3.1.2 || Once in 6 Month
C1.1.3.3.9 Service quality || Once in 6 Month
C1.1.3.1.2 || Once in 6 Month
C1.1.3.4.1 || || || || || Monthly
C1.1.3.8 || || || || || Monthly
C1.1.2.1
O1.1.4.1.1 || || Quarterly
O1.1.4.1.2 || || || || || Monthly
O1.1.4.1.3 || || Quarterly
O1.1.4.1.4 || || Quarterly
Assignment
Assignment : Integration of Strategy Planning with HRP

Case Study

The following are the vision, mission and corporate strategy for a case study company, STAR

Industries, a manufacturer and seller of building supplies.

Vision

STAR products will be the first choice for customers, designers and architects building high quality

homes and commercial premises.

Mission

To be the leading quality supplier of door and window product in India by providing customers with

innovative goods and services which anticipate and fully satisfy their requirements.
Integration of Strategy Planning with HRP

Star Industries made a Strategy as mentioned below:

Customers

To fully understand and exceed our customers needs and deliver superior customer service.

People

To attract and keep innovative, customer-focused employees who can support our expanding

business, and reward performance fairly and equitably.

Manufacturing

To use best-in-class door and window manufacturing techniques to maximise the quality of all of

our product.

Integrate Strategy Planning with HRP of Star Industries