Breakthrough management, rather than core competencies and TQM, is the key to winning in the great new globalised world.
-Dr. Shoji Shiba
(Japanese quality expert)

HISTORY

The age of corporate management is divided into three parts:
 Controlled management
 Kaizen
 Breakthrough management

CONTROLLED MANAGEMENT

 It was in practice in 1930’s.
 Is a top down strategy
 Where quality is controlled with mass production in mind.
 Production concept, Selling concept.

KAIZEN- Continuous improvement

 Started during the 1960’s.
 It was a bottom up approach.
 The customer and the worker was the focal point.
 Basic aims:
- humanize work place
- reduce wastage
 Improvement based on internal information.

What is Breakthrough management?

 In the world of globalization of economies, BM is becoming a new buzz word.
 Radical business ideas which may even include transforming the line of business for accelerated growth.
 Or transforming the business to become more innovative and powerful.
 Creation of new customer segment where it didn’t exist before.
 The key to BM is to unlearn what has been learnt and learn new strategies.
 It Is about managing key business factors i.e.
-effectiveness
-consistency
-focused mobilization of people

BM V/S CORE COMPETENCIES

 Core competency is concerned with corporate culture and technical strengths
 Diversification is a move to protect against existing risks
 BM is about taking a future risk


IMPORTANT INGREDIENTS

 New paradigm shift to achieve exponential growth- think laterally, forget core competencies and cost cutting.
 Think radically, be willing to take risks
 See the future and chart out a break through strategy.
 Visit customers where the product or service is being used and chart out future course of action.
 Expand, export and go global.
 No mindless diversification, cap on finances that can be risked in pursuit of new ventures.
 Invest in R&D and produce new products.
 Change mental make of new CEO’s in the era of globalizations.
 Grow at accelerated speed, pursue radical business ideas.
 Change line of business or transform business- become innovative and more powerful.


HOW TO CONVINCE CEOs?

 Good business opportunity
 One who takes risks
 Knows that it is beneficial for the business
 Thus CEO needs to be convinced

CHALLENGES FACED BY CEOs

 Money has to be spend initially without any apprehensions
 Thus CEO needs to be proactively involved


FREQUENCY

 Almost every 10 years
 That’s usually the duration of a product life cycle



IMPLEMENTATION

 First phase – idea generator-forsees market-changes to be carried-prepares business case
 Second phase – develop technical capability-infrastructure- for execution of idea
EXAMPLES
 TV TO INTERACTIVE TV (TATA SKY) –
- Direct To Home (DTH)
- Channels under categories
- Interactive features
- Games
- Timings of next feature
 LANDLINES TO MOBILES
- earlier only landline phones
- difficult to communicate
- mobiles developed first in 1947
- by BELL lab engineers at AT&T
- huge success as increased convenience

 PAPERWORK TO COMPUTERWORK
- paperwork too cumbersome
- difficult in offices
- automation of all file work in offices
- more efficiency and speed
- used in all walks of life

 Books To Google
 Low cost Airlines- Air Deccan
 From Medicine and tourism to medical tourism- ATE GROUP OF COMPANIES.
 ICICI- Microfinance

Current trends in breakthrough management.
 Tata steel- chorus
 Hindalco-novellis
 Bajaj, mahindra& mahindra
 Reliance industries
 UB beverages
 Organized retail in India



Breakthrough Management Group


 BMG is the world's leading provider of training and consulting for performance excellence.
 Specializing in Lean, Six Sigma and Innovation, BMG works with leading companies around the globe to help "in-source" new capability and develop new core competencies.
 Founded in 1999 and headquartered in Longmont, Colo., BMG has developed a loyal clientele that today exceeds 200 active businesses in industries as diverse as biotechnology, health care, finance, telecommunications, manufacturing and energy.
 BMG has offices in 12 countries and has more than 100 employees worldwide.