a presentation on kumar mangalam birla as a st

8/3/2019 A Presentation on Kumar Mangalam Birla as a St

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A presentation on Kumar

Mangalam Birla as a Strategicsleader

Presented byNirav Patel

Shabbazudin Kazi

Rohit DadhwalMehul GalaniVishal Kapasi


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Born on 14 th June 1967 the great indian industrialist was theson of late Aditya Birla.

His native place is Pilani,Rajasthan

A chartered accountant, Mr. Birla earned an MBA fromLondon Business School, where he is also an HonoraryFellow

Chairman of the global conglomarate Aditya Birla Group.Director of the Central Board of Directors of the Reserve

Bank of India Chairman of the Staff Sub-Committee of theCentral Board of the Reserve Bank of India.

He serves on the Prime Minister of India's Advisory Councilon Trade and

Bio - graphy


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About Aditya Birla Group

A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune 500.It is anchored by an extraordinary force of 130,600 employees, belonging to 40different nationalities. In the year 2009, the Group was ranked among the top sixgreat places for leaders in the Asia-Pacific region, in a study conducted by HewittAssociates, RBL Group and Fortune magazine. In India, the Group has been adjudgedthe best employer in India and among the top 20 in Asia by the Hewitt-Economic

Times and Wall Street Journal Study 2007. Over 60 per cent of the Group's revenues flow from its overseas operations. The Group

operates in 26 countries Australia, Bahrain, Bangladesh, Brazil, Canada, China,Egypt, France, Germany, Hungary, India, Indonesia, Italy, Korea, Laos, Luxembourg,Malaysia, Myanmar, Philippines, Singapore, Switzerland, Thailand, UAE, UK, USAand Vietnam.

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where successdoes not come in the way of the need to keep learning afresh, to keep experimenting.


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Companies ownedThe Aditya Birla Group companies in includes :Hindalco Aluminium & CopperGrasim Cement & VsfUltra Tech Cement - CementAditya Birla Nuvo from manufacturing to service based

products. Eg Adiyta birla sunlife

Idea cellular - TelecomAditya Birla RetailAditya Birla Minacs BPO,IPO,CRM


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Globally Aditya Birla group is......

A metals powerhouse, among the world's most cost-efficientaluminium and copper producers. Hindalco-Novelisis thelargest aluminium rolling company. It is one of the threebiggest producers of primary aluminium in Asia, with the

largest single location copper smelter.No.1 in viscose staple fibre The fourth-largest producer of insulators The fourth-largest producer of carbon black The fifth-largest producer of acrylic fibre The ninth-largest cement producer Among the best energy-

efficient fertiliser plants


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In India Aditya Birla Group is......

One of the leading cement producers The top fashion (branded apparel) and lifestyle player The second-largest producer of viscose filament yarn The second-largest in the chlor-alkali sector

Among the top four mobile telephony companiesAmong top 10 Indian BPO companies by revenue sizeA leading player in life insuranceand asset managementAmong the top three supermarket chains in the retail

business


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Strategic Decisions by KM Birla...

Emphasis onmeritocracy.

Balance in portfolio

Umbrella brandingstrategy

Merger & acquisition


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Emphasis on meritocracy

When Birla joined the company, he worked withmanagers who were nearly thrice his age. Senioritydetermined hierarchy, rather than merit. Birla spent quitea lot of time to change this. He put up performancemanagement systems, reviewed compensations andemphasised on training to bring in meritocracy


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Balance in portfolio

The birla was mainly concerned with the manufacturingbusiness but they did not want to be called as only assetintensive industry rather it wanted to diversify rather thanto be restricted to only one kind of product.

They wanted to enter the less asset intensive business.

They wanted to deal with servive and IT sector


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Umbrella branding stategy

An umbrella brand is a parent brand that appears on anumber of products that may each have separate brandimages and covers diverse kinds of products which are moreor less related. It applies also to any company that is

identified only by its brand and history The idea is to move into two or three national brands. One,

say, for normal ordinary portland cement, another for slagcement, another for speciality cement


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Merger and acquisitions

It is wrong to say that birla group have stopped growingorganically and they are only looking at M&As. Given thefact that they are in so many different industries, thelandscape in each industry is very different. In somecases, there are opportunities to grow throughacquisitions. And that we've done in the past two years.But in some other industries it may not be possible. Sothey are not wedded to any one option. We're looking at

creating the best balance for us and for our shareholdersin general.


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Major M & A sAditya Birla Nuvo traces its origins to a modest beginning with the acquisition of Indian

Rayon Corporation Limited in 1966.

In 2000 Indian Rayon acquires Madura Garments, taking the Aditya Birla Group to thetop of the league in the branded apparels sector In february 2007 Hindalco announced complete acquisition with the Novelis. he

transaction makes Hindalco the world's largest aluminiumrolling company and one ofthe biggest producers of primary aluminiumin Asia, as well as being India'sleading copperproducer.

Aditya Birla Retail wing in 2007 acquired Trinethra as a part of its larger plan to enter

multi-format retailing in India. AB Retail acquired 90% of the shareholding in Trinethra.The other 10% remained with India Value Limited, a private equity investment fund thathad been the majority shareholder in Trinethra before the acquisition.

In CANADA - TransWorks Information Services Ltd, a unit of Aditya Birla ManagementCorp Ltd's Aditya Birla Nuvo Ltd subsidiary, acquired all the outstanding common stockof Minacs Worldwide Inc (MW), a provider of Business Process Outsourcing (BPO)services

In 2009 the board of directors of UltraTech Cement Ltd, a unit of the Aditya BirlaGroup, and affiliate Samruddhi Cement Ltd agreed to merge to create the countryslargest cement firm with a 20% market share and total capacity of 48.8 million tonnesper year


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9 learnings and others.......


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lesson-1:

The first is the ability to manage time effectively because anorganisation in a state of flux throws up many moredemands on your time as compared to one in a steady state.

And the second area is that of energy management because

the process of change can be rather exhausting, bothphysically and mentally, and requires sustained levels ofhigh energy over a prolonged period of time.

So the first lesson for them has been that the process ofchange is perhaps 90% about leadership and only 10% aboutmanaging


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Lesson 2 In 1996, Birlas launched for the first time a Corporate Identity. The intent at

one level was simply to have a group identity that would serve as a corporate

logo. We chose the rising sun. That the impact of a symbol can be so enormousis something that took us by surprise.

The learning was quite striking. The need to relate, to belong to a club, to anassociation, basically to some sort of fraternity is inherent in all of them . Thecorporate identity served that need, as also as a proxy for a charismatic leader

who was missed greatly. At another level, it made an emotional connect thatwove the group into an integrated whole.

The Rising Sun, in a strange way, brought a new optimism and served as arallying point for the organisation. That really, in a strategic way, was the firstpositive step for them in their process of change.

The lesson they learned is that symbolism can and does have a positive effect


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Lesson 3A critical area in any change process is that of communication. The process

of transformation is about communication, communication and more

communication. In the case of a corporation going through the pangs of change, kumar

mabgalam birla do not believe that anyone can ever over communicate.And he cannot think of any instance in their case where the change processwas set back because of over-communicating.

Using technology to advantage in communication can add a zing to theprocess. Reaching out to as large an audience as possible, engaging withsmall groups, opinion makers and those who may be impacted adversely, isobviously critical . And communication is the key to making this happen.

On a more serious note, the point to be made is that it is important tocustomise communication, so that different audiences within the

organisation understand the message in its right context, in the way it wasintended . So, the third take away for Birlas was that when they succeed inthe transformation, it is because your communication worked


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Lesson 4 Different people have different roles to play in the process of change.

He believe that the management of most organisations focuses

sharply on high performers That is, of course, important but, I do believe that what is equally

important, is to focus on that bulk of the organisation who aresomewhat dismissively referred to in management jargon as 'thestayers'.

These are people who make the day-to-day, month-to-month,quarter-to-quarter things happen. Their role in the process of changeis critical. Just as 70% of the human body is made up of water, so also70% of any organisation is made up of people who follow the rules,

who keep it moving ahead at a steady pace.

You cannot have everyone setting the rules. The organization needpeople who follow the rules, people who may not contribute in asignificant way intellectually, but who are happy to implement therules diligently.


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Lesson 5

There is something to be said about the virtue of

organisations that are heterogeneous in their composition.Our experience has been that a heterogeneous mix of

people, though very difficult to lead, helps in the process ofchange. You need the pacers, the spinners, the good wicketkeepers just as much as the pinch hitters, to become awinning team. Bringing in people from organisations with different

cultures, who have different skill sets, a different pair ofeyes, can be useful, so long as they all bond with the basic

values of your work place. So, moving away from homogeneity or creating a climate

that embraces different cultures and gives them wings whilstkeeping the organisation rooted in its core values, can be aproductive exercise and a useful catalyst in the change

process


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Lesson 6 It has been their learning that it is good to analyse failures.

The birla group does this not merely to not repeat the samemistakes, but equally to showcase success. They have created a platform called the Aditya Birla Awards

where team achievements across the organisation arerecognised every year.

The genesis of these awards is that each one of them needssome-thing to be inspired by, more so, when they are beingstretched in all directions in the process of metamorphosis.

Importantly, it has been the belief of Birla Group that whilstthe individual stars, the sterling performers are important, itis the creating of star teams across the organisation that ismost critical. Individual stars who cannot become a part ofstar teams, are of little value.


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Lesson 7

A considerable part of the change in the Birla Groups casereflects shifts in geography as well as a rapid pace ofmergers and acquisitions. The result is that the organisationis faced with the challenge of having to integrate with a

culture that is foreign to it and practices it has beenunexposed to.

Kumar Mangalam Birla says that their long-standingpresence overseas and the exposure it brought with it, hasmade the task of adapting to different cultures a lot easier.

All the same, an attitude of willingness to learn andassimilate from different cultures is an absolute must.


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Lesson 8 Tracking the organisational climate, especially in a process

of catharsis, they believe is critical, simply because youcannot set a problem right until it is correctly diagnosed.Kumar Mangalam Birla has relied heavily on the

organisational health study methodology. . Tracking organisational health has become an

institutionalized process for them and has paid immensedividends. So, the learning on this front has been thatseeking feedback in an institutionalised way and acting on itis a huge positive in the process of change.

The underlying philosophy is that whilst it is the duty of themanagement to ensure that the company is a goodemployer, the responsibility for ensuring that it is a greatplace to work in is shared across the length and breadth ofthe organisation.


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Lesson 9

Today, every organisation puts a premium on speed. BirlaGroup loathe anything that is not fast enough, for obviousreasons. In a process of transformation however, onelearning that stands out for us is that it is only infinite and

indefinite patience that brings immediate results.Different parts of the organisation respond differently to the

change stimuli. It is unrealistic to expect the transformationprocess to take off at the same pace throughout.

Internalising the process of change takes its own course

however fast one might wish to push it through. There is nogetting away from it and therefore there is no substitute forconsistency.


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Conclusion

Lastly we can say that much of the change process for theBirla Group has been much about learning, unlearningand relearning, and Mr kumar Mangalam Birla have beento cull out the important strategies which he believe are

key to their transformational process. He brought inradical changes, changed business strategies,professionalised the entire group and replaced internalsystems.


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Thank You

a presentation on kumar mangalam birla as a st

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