MY SAIL MY PRIDE- strengthening the sense of belongingness & pride in SAIL and contributing to the organisations quest for

achieving global excellence. 24th January 2027 WORLD STEEL DAY. A very special day & proud moment for SAIL collective, when its progress was recognised by the world and honoured by celebrating SAIL foundation day as World Steel Day from 2027 onwards. Today, eminent personalities, media, foreign counterparts have all gathered to celebrate this occasion at Vigyan Bhavan New Dehli. All were keen to know the strategy adopted for SAIL spectacular success. World Steel Association, called this strategy as, Soft & Silent Vision 2025 which complemented its technical Vision 2025. SAIL was now among top 3 Indian company & among top 50 global fortune 500 companies.

After declaration of Vision 2025 SAIL top management realised, the people thread is what prepares an organization to compete and win, and employee engagementthe emotional commitment of employeesis a tremendous competitive advantage that impacts the bottom line when strategically managed. Ninety-nine percent of failures come from people who have the habit of making excuses. To make employees passionate about SAIL Vision 2025, and contribute towards Delivering Excellence SAIL decided to develop, measure & improve entrepreneurial culture in the company. It was measured mandatorily through performance appraisal every 6 months. Index was specifically developed for this. Additionally five supporting measure to enhance entrepreneurial culture catering to specific keyfactor, were adopted. These 6 measures together were key drivers of SAIL success, being called as Soft & Silent Vision 2025. Five Supporting Measures to enhance entrepreneurial culture were:

1. Post Promotions now based solely on merit within predefined role structure however, pay grade was released timely with some stagnation. 2. Additional Focus on developing future strong leaders by Cutting edge training to selective potential employees with higher entrepreneurial culture. 3. All deviations to quality measured in cost terms, through Cost of Quality(COQ) system, to see poor quality impact on Income. 4. Company adopted e-mode financial transactions and e-file management system to considerably reduce on logistics and time taken for decisions. 5. In four metros, CMO Regional Offices, served as central unit, with multi-plant inspection group & one import clearance group. This improved rapport among plants/CMO with huge savings on resources. We now invite, SAIL management to address, this august gathering & elaborate about entrepreneurial culture, its index and five supporting measures used for unlocking excellence through employees contribution(presentation accompanied) -------------------------------Good Morning to all the esteemed guest and my colleagues, First of all I congratulate !!! all my SAIL colleagues for this honour of celebrating 24th Jan as World Steel Day. In the past decade, we have certainly moved in a very systematic way towards world class corporation. SAIL made an action plan to develop upon and continuously measure entrepreneurial culture through an index. This was done as a strategic proactive measure to improve upon bottomline by delivering excellence in all processes and activities done. Survey of 430 US companies in 2013 revealed the advantage of entrepreneurial culture as tabulated below :
ADVANTAGE OF ENTERPRENEURIAL CULTURE 430 US COS SURVEY-2013

entrepreneurial culture increases Customer metrics Productivity profitability Avg 3 yr revenue growth(without this it is 8.9%) Higher than avg shareholder returns Effectiveness increase of employees Earning per share w.r.t competitors Better growth trend w.r.t competitors entrepreneurial index > 50% , success rate increase entrepreneurial index > 99%, success rate increase

% 10 21 22 20.1 22 57 147 90 2 times 4 times

entrepreneurial culture reduces absenteeism Theft(shrinkage) Safety incidents Quality incidents(defects)

% 37 28 48 41

Let us first understand what is entrepreneurial culture and why it is so important ?? Entrepreneurial Culture is the Culture where people and organizations work together, to implement an idea through the application of creativity, drive and calculative risk. It addresses the political and commercial aspects of implementation at various levels. It has to identify the key factors and the role each one play within a policy framework. Each member has to Stimulate, Sustain and support entrepreneurial culture in the organization. Its importance lies in the fact, it makes employees feel emotionally connected to the organisation, understand what it takes to help the organization succeed, and drive for that result. Increasing an organizations entrepreneurial index had positive impact to fuel operational excellence, innovation, and the ability to compete. How we measured entrepreneurial culture & set path for its improvement ?? Based on its policy framework and requirement of technical Vision 2025 SAIL indentified 9 key factors with differing weightage to develop Entrepreneurial Index. All 9 key factors need not require equal focus, and are complementary to one another INDIVIDUAL(supports) 1. Innovation 2. Proactive Business Focus 3. Reward & Motivation TOTAL % 10 10 10 30 TEAM(stimulates) 4. Leadership 5. Quality Culture 6.Productivity Culture % 15 15 15 45 SYSTEM(sustains) 7. Resources on time 8. Improving value chain 9. Social Infrastructure % 15 5 5 25

Entrepreneurial Index scale of 0-400, signified four progressive culture stages as mentioned

S. No 1

Score 0-100

Name of Culture Inference w.r.t. Company working.

BUREAUCRATIC FUNCTIONARY SATISFIED MANAGER

101-200

These persons are pessimistic, self-centered, power hungry & autocratic, almost working negatively to entrepreneurial culture They are happy with the routine, till nothing is expected out of them. There indifference towards any changes,

201-300

301-400

harms the culture POTENTIAL These are the people of all positive traits, but as they ENTREPRENEUR dont have the courage to change the system, they get frustrated easily. Such people when given proper environment & support, can achieve marvellous heights. ENTREPRENEUR They always exhibit enterprising behaviour & are IAL CULTURE JEWELS AMONG THE LOT. Their potential cannot be tapped if they are small in number

Entrepreneurial culture was than measured by appropriate questionnaire(not to be repeated in 5 yrs), designed to seek views on key factors. Questions seeking views on actual cases were also incorporated, to evaluate readiness to change with the changing business environment. Entrepreneurial Index questionnaire was made part of performance appraisal system to be mandatorily filled by every officer and latter by supervisors also every six months. This step proved to be a milestone for turnaround of SAIL.
Further detailed characteristics of each culture useful in questionnaire design are tabulated.

Characteristic

BUREAUCRATIC FUNCTIONARY INDIVIDUAL(supporting role) Innovation working negatively withholding information, resources. Proactive Self centred Business Focus Reward & Motivation Power hungry & not satisfied with rewards & motivation TEAM(stimulating role) Leadership Autocratic & coercive leadership Quality Culture Productivity Culture Hampers productivity Hampers productivity

SATISFIED MANAGER Not interested

POTENTIAL ENTREPRENEUR Creative but not innovative

ENTREPRENEURIAL CULTURE Creative as well as innovative, aligned with companies & customers requirement. Has vision, idea & ability to turn them in reality

Not bothered

Motivation very temporary. Do not believe in leading Maintain Status quo Maintain Status quo Not concerned

Has business focus but not able to encash upon opportunity Motivated with these Self motivated but at the same time their rewards enhances absence frustrates persistence power. Intermittently working for this. Maintains & sometimes try to improve. Maintains & sometimes try to improve. In due course Fire fighting may improve. Guided by these values. Always trying to enhance it. Always trying to enhance it. Well planned continuous improvement.

SYSTEM(sustaining role) Resources on No faith in any time improvement

Improving value Too much attention chain & devotion of time on doing nothing but cribbing Social Concerned about Infrastructure only his interest.

Satisfied with the facilities available Not very particular about time

Give required attention & try to maintain Try to utilize resources & unavailability frustrates him.

Attention & devotion to improve upon it, within resources. Optimum utilization of available resources, Outsourcing if required in time.

I am proud to say that today none of the areas have Entrepreneurial Index less than 360. Now let us understand how we enhanced Entrepreneurial Index through 5 supporting measures ??.
SAIL main aim was to shift people with Potential entrepreneurial culture to Entrepreneurial culture. In a unit level officers including supervisory category, the ratio is 20:80 of manpower. This 20% core-group of officers and supervisors was nurtured to spearhead the cultural change, and spread it into the whole organization. Other employees mainly unskilled learnt from these role models.

After analysis It came out that 5 of the 9 key factors covering 60% weightage were weak link to Entrepreneurial culture. SAIL specifically developed value adding, measurable improvement steps, we call as five supporting measures. Key factor improved through them were 1. 2. 3. 4. 5. Reward & motivation----------weightage---10% Leadership-----------------------weightage---15% Quality Culture------------------weightage---15% Resources on time------------weightage---15% Improving value chain--------weightage---5%

For reward and motivation, We decided, to release Post Promotion to meritorious officer only & within predefined role structure with no of persons determined with the help of IED. Monetary benefit paygrade was however released with some stagnation. Previous timebound seniority based promotion policy, led to too much fragmented groups within the department/sections. Superiors under compulsion promoted non performing officers for the fear of backlog, blocking junior batch officers. There was less cooperation with same grade I/charge officer, with awareness that their appraisals will be filled up by higher grade officer only. Now assurance of merit receiving due rewards prevailed. As a second supporting measure we made strong leaders, through a month long Cutting Edge Training. It was given to individuals with high Entrepreneurial Index. Employees drawn after 8-10 yrs and 20-22 yrs experience. Training included tenacity development, outdoor activities, even camping, walking on fire, lifestyle management, as it started from 6am with yoga and went upto 9pm each day. Idea

was taken from oil sector. Further it led to individual monitoring and relationship development among future leaders. Next to brand SAIL as quality steel company we internally established Cost of Quality System(COQ). Quality culture was developed for eliminating waste and providing value addition. Waste can be from overproduction, waiting time, transportation waste, processing waste, inventory waste, waste of motion and waste from product defects. These wastes were identified measured and monitored through Cost of quality(COQ) system. By measuring quality in financial terms, the COQ system allowed management to create a major cultural change by using terms familiar to everyone- the bottom-line. COQ was most helpful for middle managers to see the consequences of poor quality on overall income. The system was able to express costs under four categories: 1. Prevention Costs : costs incurred to prevent non-conforming units from being produced. 2. Appraisal Costs : costs incurred to ensure that materials and products that failed to meet quality were identified prior to shipment. 3. Internal failure costs : scrap costs & costs incurred in correcting errors caught at appraisal, before delivery of the products to the customer . 4. External failure costs: costs incurred in correcting errors after delivery of the product to the customer. All cost were not tracked at the same frequency. Internal failure were reported more often than indirect cost. Thus SAIL developed quality culture with framework
for

Collecting & recording non-conformances Collecting this data in a suitable database Sorting the data from several different perspectives Using the data to drive the corrective action process efficiently. .

In the fourth supporting measure, we improved logistics, decision making and to have resources on time, by adopting 100% e-mode financial transaction system & e-File Management System (EFMS). All money paid and received electronically. This improved fund management, reconciliation and transparency with less manpower and resources. e-File Management System (EFMS) on Lotus 6x platform, reduced decision time and overall order cycle and inventory management. Additional benefits of EFMS were: 1. storing and retrieving information 2. It allowed discussion with approval & protected originality of documents through versioning. 3. It helped integrate business process workflow into a document management system where information is available in a flash with access rights management, eliminating the risk of misplaced documents. Last measure was to improve rapport among plants and CMO. All Plants unit offices of metro cities were merged together to form multi-plant inspection groups

and one import clearance group. They were reporting operationally and working from each of the four metros CMO Regional offices. This considerably reduced the resources needed for RO, improved upon their survival as well as SAIL image. This group besides inspection job was sending monthly critical reports and data pertaining to plant product sales of the region. The inspection group also provided markets environment of concerned SAIL plant product at the end of each quarter. This forward linkages with the market scenario and its regular feedback to plant served a long way in aligning the product mix to the market need. This was SAIL Soft & Silent Vision 2025 for delivering excellence. Now we must remember whenever an individual or a business decides that success has been attained, progress stops. JAIHIND.