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Framework and Measures Overview

July 5, 2011

RTLC - Satyam Computer Services Limited

Evolution Whats an FLCB Whos an FLCL

Full Life Cycle Leadership (FLC) Program - Overview

Whats North Star What are Attributes (6P and 5R) What are Measures What are Performance Zones What are Action Items

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Evolution

Satyam
Full Life Cycle Leadership

~2000 + ~1600 Full Life Cycle Businesses managed by

symbolizes Satyams Values

Integrated FLCB Integrators Integrators

Individual Individual FLC Business FLC Business

Individual Individual FLC Business FLC Business

Individual Individual FLC Business FLC Business

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Evolution
Model
5

Goal
Extract Higher Business Value

My My FLC Business FLC Business STARTR AC

1 2

NORTH STAR 4

Raise the Bar

FRAMEWORK (Attributes)

SHINING

DIRECTION

6Ps

5Rs

BRIGHT VISIBLE TWILIGHT INVISIBLE

If Star is not Shining, then Identify Action Items Implement Action Plans Test & Validate results Ensure sustained results Timely escalations, where required

Measures Definition Guidelines Principles of Stretch Best-in-class benchmarks Alignment to Critical Measures

MEASURES

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Evolution

Contd

SatyamWayTM institutionalized across the organization

o Thinking, Doing and Communicating integral to Value Creation

Satyam
~2000 ~1600 + Full Life Cycle Businesses managed by

Our Value Emblem symbolizes this belief

o Ability to seize opportunities and delight stakeholders the fundamental trait

Reinforcing Leadership through an Empowered & Distributed Leadership model

o o o o Full Life Cycle (FLC) Leadership Program introduced Businesses defined into five broad categories and prioritized ~ 2000+FLC Businesses (FLCBs) & FLC Leaders (FLCLs) identified 6P & 5R Framework (through Attributes and Measures) introduced as a Uniform Business Language

Integratored Integrators FLCB Integrators

Individual Individual FLC Business FLC Business

Individual Individual FLC Business FLC Business

Individual Individual FLC Business FLC Business

An automated tool - STARTRAC - developed to help manage FLC businesses

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Contd

With a view to strengthen leadership across levels and sow the seeds at an early stage, the Full Lifecycle Leadership Program has been launched.

Satyam
~2000 + ~1600 Full Life Cycle Businesses managed by

Full Life Cycle Leaders will have end-to-end responsibility for identified Full Life Cycle Businesses (FLCB) and will be encouraged and empowered to run them as independent businesses.

Integrators Integrators

Individual Individual FLC Business FLC Business Individual Individual FLC Business FLC Business Individual Individual FLC Business FLC Business

In the context of the SatyamWay the Full Life Cycle Leader (FLCL) is the de-facto CEO of the business and is fully accountable for the health of the business.

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Whats a Full Life Cycle Business (FLCB)

Each Circle has its own set of Full Life Cycle Businesses that deliver value to the stakeholders. The various categories of Full Life Cycle

Satyam Integrators
Relationships (Customers & Alliances) Service Offerings (S.O.)

Businesses are: Relationships Customers New Business Development Service Offerings Projects

Projects

Processes

PMO Processes Alliances These categories are - individually or in a group - classified as Full Life Cycle Businesses based on their size, potential and focus.

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Whats a Full Life Cycle Business (FLCB) Contd

Prioritization serves as a basis for allocation
of management attention and company resources to the FLCB. FLCBs are prioritized by the value that they contribute to the value-creating network : Satyam

Satyam Circles
Relationships (Customers & Alliances) Service Offerings (S.O.)

Full Life Cycle Businesses based on their size, revenue potential and importance to the organization are prioritized into PPP, Opportunities

P&G

For Relationships, Service Offerings &

Projects Processes

Projects
20% of the top FLCBs are prioritized as Platinum (P) and Triple Platinum (PPP) FLCBs. (Of these, top 1/3rd are classified as PPP and 2/3rd as P opportunities). Remaining 80% are Gold (G) FLCBs

For Processes
Processes will have equal (1/3rd each) weightage for prioritization as PPP, P & G Businesses
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Whos a Full Life Cycle Leader (FLCL)

Full Life Cycle Leader (FLCL) manages

an identified FLC Business (FLCB) and is the CEO of the business. FLC Businesses can be a) b) c) An independent business under a category (Relationships / Projects etc) or A set of businesses grouped together across different categories or A set of businesses grouped under a Circle While everybody is an FLC Leader, those who handle (b) and (c) above are also referred to as Integrators

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Whats North Star Statement

North Star Statement refers to the overarching result one wants to achieve in a given business
Guidelines to define a North Star statement - KEEP IT S.M.A.R.T Simple and Specific (~ 10 words) Measurable and Motivating Attainable (with a stretch) Relevant and Realistic Time-based and Tangible Examples of North Star statement:
Relationship: To become the only preferred business partner' with Company X in y timeframe Service Offering: To be the biggest contributor to VBU XYZ revenues by FY __ Project: (a) To get a customer delight rating of ___ from Customer X (b) To be acknowledged as having the most effective Program Management skills amongst the SIs servicing the customer Process (e.g. Idea Junction): Position Satyam as the most innovative organization amongst global SIs in 2 yrs
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What are Attributes (6Ps & 5Rs)?

1. Faster

Promotion
5. Steadier
5Rs

2. Better

Patent Proliferation Product Process

4. Larger

3. Cheaper

People

Attributes relating to building, buying and maintaining assets are assessed on 6P Framework, with the People attribute signifying the foundation and the remaining arranged in a logical sequence and labeled as Competencies The outcomes are assessed on the 5R Attributes.

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What are Attributes (6Ps & 5Rs)? Contd

Managing Performance of FLC Businesses (Using 6P & 5R Framework) As a network of interdependent businesses, the performance of businesses need to be monitored so that its effect on other businesses is managed correctly This also needs to establish the relative criticality of each business to help Integrators allocate resources and effort
Promotion Patent Proliferation Product Process People

appropriately Accordingly, the following will be used: the 6P/5R Framework to determine business performance and a methodology to assign relative weights to each business. These relative weights will help determine the performance of Integrators and Circle Leaders
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What are Measures?

Measures are defined to assess the performance of the businesses and the extent of value created. North Star and Targets should reflect the stretch principles and have an alignment to the Critical Measures Types of performance measures include:
Build Measures The resources used in producing an output or an outcome. "What resources are in place or are needed to conduct this activity?" Outcome Measures An event, occurrence or a condition that indicates progress towards achievement of the goal.

Critical Measures are the 100 most significant measures at the organizational level Where applicable, Measures at the FLC Business Level should be aligned with the Critical Measures of the organization (e.g. ADI score)
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What are Performance Zones?

Performance of an FLCL lies in any of the five zones, namely Invisible Zone - <2.5 Twilight Zone - > 2.5 and < 3.5 Visible Zone - > 3.5 and < 4.0 Bright Zone > 4.0 and < 4.5 Shining Zone > 4.5

The FLCLs goal is to steer the biz to the Shining Zone The performance of an FLCL at any point of time reflects the achievement of planned targets for that period. Question to ask is Is my STAR shining ? Star shining status denotes whether what was to be done as on that date, has been done. The premise is that stretch principles have been applied while setting targets and alignment to the Critical Measures has been ensured. Global and Indian benchmarks are used to ensure best in class principles.

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The Role of RTLC Mapping iSTRIVE to FLC Model

Helps FLC Leaders institutionalize the Language of Metrics as our Business Language through iSTRIVE Methodology
Identification of FLC Businesses and FLC Leaders

i S T

Setting North Star goals, Targets for Attributes, Defining underlying Measures

Ensuring Data updates (Actuals on STARTRAC) and Tracking if Businesses are SHINING Reviews help identify Action Items for businesses that are not SHINING. Focus is on unearthing hidden issues (10 times more than the current baseline !) that deter growth

R I V E
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Improvement is through implementation of effective Action Plans - employing iSTRIVE framework. Target should be to close all Action Items in 1/10th of the current timeframe. Validating whether desired results have been achieved and can be delivered on a sustainable basis. (Evaluate if the decisions are qualitatively far superior). Focus on ensuring results through timely and sustained Escalations.

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7 simple steps to manage your FLCB

Define North Star and Targets reflecting stretch principle Update Actuals by the 15th of every month Conduct periodic reviews on STARTRAC Identify action items if business / attribute / measures is not SHINING Seek specific analysis and inputs from RTLC to facilitate early resolution Track action items to closure, through iSTRIVE methodology Ensure that the attributes and measures are always SHINING (Escalate
where required)

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Performance Management
Performance Management powered by RTLC FLCL will be assessed on the 0-5 scale FLCB will be assessed on their Biz performance - Star Shining status Feedback from Peers (InciT), Integrators and Forum members will provide 360 perspective Review remarks on STARTRAC will feed into Performance Assessment. INCENTIVE MODULE will help reflect eligibility
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STARTRAC - Enabling FLCB Management

STARTRAC is a web based performance management tool that enables FLCLs to monitor business better by: a) Tracking b) Reviewing c) Improving business performance

STARTRAC is a common information sharing / capturing platform STARTRAC captures all performance related data of FLCBs Data entered in STARTRAC is used for assessing business performance and hence the FLCLs performance. STARTRAC is linked (soft and hard linkage) to several internal systems to facilitate automation of Data input. E.g.: PCPi for Projects and Relationship business categories, SHINE, TSMS, SPR Developing new systems for integrating & interfacing, wherever required Views are restricted to authorized stakeholders

Data inputs into STARTRAC is maintained with high confidentiality

Controlled and customized views to all stakeholders are being incorporated progressively

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Performance Zone of FLCB

Performance Zone of each FLCB is determined by the maturity level of 6P-5R as under:
Aggregate maturity of 6P and 5R If both 6P and 5R are > 4.5 6P: > 4.0 5R: 4.0 to < 4.5 6P: 4.0 to < 4.5 5R: > 4.0 6P: > 3.5 5R: 3.5 to < 4.0 6P: 3.5 to < 4.0 5R: > 3.5 6P: > 2.5 5R: 2.5 to < 3.5 6P: 2.5 to < 3.5 5R: > 2.5 If either 6P or 5R is < 2.5 Invisible Zone represented in Red Twilight Zone represented in Orange Visible Zone represented in Yellow Proximity to North Star Shining Zone represented in Green Bright Zone represented in Blue

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Star Shining Status

6P-5R : Actual vs. Target represents the Star Shining status as under:
% Achievement w.r.t target for the review period (Aggregate 6P & 5R maturity) North Star status shown in STARTRAC

If both 6P and 5R are > 90 % 6P: > 80% 5R: 80 % to < 90 % 6P: 80 % to < 90 % 5R: > 80 % 6P: > 70 % 5R: 70 % to < 80 % 6P: 70 % to < 80 % 5R: > 70 % 6P: > 50 % 5R: 50 % to < 70 % 6P: 50 % to < 70 % 5R: > 50 % If either 6P or 5R is < 50 %

Shining Bright

Visible

Twilight

Invisible

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RTLC Enables all FLCLs to engage their Stakeholders

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Integrators view

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FLCB

FLCB

FLCB North Star Benchmarks

FLCB

FLCB

Asset Attributes 6Ps

Experience Attributes 5Rs

People

WEIGHTAGES

MEASURES

Product Proliferation Patent Promotion

Better Cheaper Larger Steadier

MEASURES
PCPi OPTIMA Other Systems

Process

Monthly Targets Action Items Escalations

Monthly Actuals

WEIGHTAGES

Faster

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Key Benefits
For the Stakeholder community An integrated view of FLCB Health and Performance on a standardized framework, using a common language An insight into dimensions that are not performing right and need focus A mechanism for the FLCL to focus on and improve the key dimensions of his/her business through the 6P/5R framework A mechanism to track, and showcase to the stakeholder community, his/her business performance A platform to obtain greater corporate focus to resolve bottlenecks Provides a platform for RTLC to empower the individual CEO with a set of Intrinsic business tools that aid in managing the business For RTLC For the FLCLs

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A few functionality

Sample Screenshots

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The Integrator dashboard

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The Graph

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Reviews by Integrator

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TargetTrac

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ActualTrac

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Action Items

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Action Items from Outlook

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Forum meetings setup from Outlook

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Directory of Unique Measures

Type of Measure Corporate Measures Compendium Measure Strategic/Critical Measures Commitment to FLCBs & Associates RCOT Measures FLCB Specific Customized Measures Relationship & NBD Project & PMO Service Offerings Alliance Process Additions Total HR , Finance, GMC, RTLC No. of Unique Measures 101
Critical Measures

List of Unique Measures

106
Associates FLCBs

21
Details

160
Details

268 182 72 211 553 1674

Details

Details

Details

Details

Details

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Measures Tree Aligned to North Star

Strategic Measures Critical Measures PPP Measures P Measures G Measures

Corporate level
The terms Strategic and Critical measures will be used at Satyam corporate level only

FLCBs (Unit and Individual)

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Applicability of Measures

Strategic

Critical

Corporat e Corporate, Circle & FLCB Sub circle & FLCB FLCB

Compendium

Optional & Custom

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StarTrac Information Flow Diagram Automation

Analysis & D

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New Measures Discovery Process

Measure Identification through 1) Idea junction platform 2)Testing & Validation process for all FLCBs in the Organization

Measure Validation through rounds of discussion with the concerned stakeholders on Measures, UOM, Frequency and Targets

Measure Inclusion:Inclusion of the Measure in the Quarterly update of the Measures Compendium and relevant category and / or FLCB(s) in StarTrac. Originator's of Ideas rewarded through the Reward & Recognition program.

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Is your Star Shining ?

It truly matters !
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