G L O B A L L E A D E R S H I P S T R A T E G I E S

D R . M . V E N K A T E S A N

S U B M I T T E D B Y – J O S H I L A K

B K C – M U M B A I

R O L L N O - 1 8

Leadership – Kumar Mangalam Birla

Is he an Effective Leader?

“Effectiveness is measured by the extent to which a leader has enhanced the performance of the organization & achievement of

Goals”

Mr. Birla took over as Chairman of the Group in 1995; In the process he has raised the Group's turnover from US$ 2 billion in 1995, to US$ 35 billion today.

Mr. Birla has restructured the businesses to emerge as a global/national leader in the sectors in which the Group operates.

He has made 22 acquisitions in 17 years in India and globally, the highest by an Indian multinational in India

R E C O G N I T I O N B Y V A R I O U S A U T H O R I T I E S A W A R D I N G M R . K U M A R M A N G A L A M B I R L A

F O R H I S L E A D E R S H I P

“ P r o o f O f h i s E f f e c t i v e n e s s A s A L e a d e r ”

Recognition & awards

Recognition – Business Leader

NASSCOM's 'Global Business Leader Award' 2012.

'GQ Business Leader of the Year Award - 2011' from Condé Nast India, an affiliate of Condé

Nast Global.

'CNN-IBN Indian of the Year 2010 - Business' for being the most outstanding business

person and making a success out of most of the businesses including the sunrise sector.

The All India Management Association's (AIMA), Managing India Awards 'Business Leader

of the Year' 2010.

The 'AIMA-JRD Tata Corporate Leadership Award' 2008.

The Asia Pacific Global HR Excellence 'Exemplary Leader' Award, 2007.

'The Global Indian Leader of the Year' by NDTV Profit in their Business Leader Awards

category, 2007.

The Lakshmipat Singhania – IIM Lucknow National Leadership Award, Business Leader,

2006.

Recognition – Business Leader

'The Business Leader of the Year', The Economic Times Awards for Corporate Excellence 2002-

2003.

'Business Man of the Year - 2003' by Business India.

'The Rajiv Gandhi Award' for "business excellence and his contribution to the country" by the

Mumbai Pradesh Youth Congress, 2001.

The National HRD Network, 'The Outstanding Business Man of the Year', 2001.

The Institute of Directors' 'Golden Peacock National Award for Business Leadership', 2001.

The Hindustan Times', 'Businessman of the Year', 2001.

The Bombay Management Association's 'The Management Man of the Year 1999-2000'.

'Among the 10 super stars of corporate finance' - Global Finance, 1998.

'Among the top 10 of India's most admired and respected CEOs and the top CEO of the coming

millennium', Business World, 1998.

Recognition – Young Leader

'Young Super Performer in the CEO Category' by Business Today, 2005.

Chosen by the World Economic Forum (Davos) as one of the Young Global

Leaders, 2004.

Represented India at the Ernst & Young World Entrepreneur Award in

Monte Carlo, Monaco in June 2006, where he was inducted as a Member of

the Ernst & Young World Entrepreneur of the Year Academy.

'The Ernst & Young Entrepreneur of the Year' Award, 2005.

'Honorary Fellowship' by the All India Management Association, 2004.

Recognition – Other Contribution

'CNBC-TV18 India Business Leader Award 2012' for "taking India abroad".

The Honorary Degree of Doctor of Science (honoris causa) in 'recognition

of his invaluable contribution in the field of business administration' by the

G. D. Pant University of Agriculture & Technology, 2008.

"For the development of technology and also for the involvement in the

field of industries in bringing the country at par with other countries in the

field of industries", the SRM University in Tamil Nadu conferred the

Degree of Doctor of Literature, 2008.

'The D. Litt (honoris causa) Degree' by the Banaras Hindu University,

2004.

A B R I E F S U M M A R Y O F H I S A C H I E V E M E N T A N D S U C C E S S

Achievements

Achievement – Global

The world's largest aluminum rolling company

No.1 in viscose staple fibre

No.1 in carbon black

Biggest producer of primary aluminum in Asia

The fourth-largest producer of insulators

The fifth-largest producer of acrylic fibre

Among the top 10 cement producers

Among the best energy-efficient fertiliser plants

The largest Indian MNC with manufacturing operations in the USA

Achievement - India

A top fashion (branded apparel) and lifestyle player

The second-largest player in viscose filament yarn

The largest producer in the chlor-alkali sector

Among the top three mobile telephony companies

A leading player in life insurance and asset management

Among the top two supermarket chains in the retail

business

Among the top 10 BPO companies

Achievement - Beyond Business

Mr. Birla has institutionalized the concept of caring and giving at the Aditya Birla Group

Works in 3,000 villages

Reaches out to seven million people, annually through the Aditya Birla Centre for Community

Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla

Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social

reform in India, Asia, Egypt, Philippines, Korea and Brazil

Runs 42 schools, which provide quality education to 45,000 children. Of these, over 18,000

children receive free education

Its 18 hospitals tend to more than a million villagers

In line with its commitment to sustainable development, has partnered with the Columbia

University in establishing the Columbia Global Centre’s Earth Institute in Mumbai

To embed CSR as a way of life in organizations, has set up the FICCI – Aditya Birla CSR Centre for

Excellence, in Delhi.

L E A D E R I N N E W ’ S

News

News Article’s

“Birla Group he has focused on fine tuning the group's talent pool. If this meant taking hard

decisions Birla did not shy away. More than 350 senior managers left the group”

"Management means attracting talented people, nurturing them, developing them, and giving

them space," asserts Birla, "decisions need to be made at every level and decisions need to be

quick. So, we have to spot, incubate and groom talent at every level of the organization, because

more people need to be making high quality decisions.“

“Birla has created a system based on meritocracy”

“The group is considered among the top 20 preferred employers in Asia.”

News Article’s

“Birla instituted the Aditya Birla Sun awards where each group company

makes an open presentation on their successes and failures to a group of

400 managers from different group businesses. This leads to information

sharing and also encourages healthy competition in the group”

“Birla believes --"It is very important for people who are doing well to be

told they are doing well,"

He unified his diverse companies under the Aditya Birla Group head. "If one

were to encapsulate it (the group strategy) in a single word - the dominant

strategic theme over the past four years has been consolidation," says Birla

News Article’s

“Birla is his father's son, but he has gradually developed his own personal management style.

Commonalities include performance orientation, a strict eye for detail, close attention to budgets.

Differences include more informal interaction with managers from top to bottom; a greater gap

between personal and office life; and a strong emphasis on financial performance”

“A 360 degree feedback program that allows managers to question even Birla's own leadership

style and does away with the 'babu culture' prevalent in the group. But while on one hand Birla

nurtures employees, on the other he is very careful about performance measures”

“Birla is equally adamant about strict adherence to policies and procedures that have been

discussed and approved”

News Article’s

“People skills are Birla's biggest strength. He has the ability to get on with both the old guard and

the new turks. Soft spoken and insistent Birla likes to be directly involved”

“But I was so overawed with his simplicity, his genuineness, and his ability to explain simple

things without trying to sell the job. If I had to take that decision all over again I'd do the same.“-

---an employee says

“Mr. Kumar is a low profile person, with a sense of humor and the rare ability to laugh at

himself”

“Mr. Birla has restructured the businesses to emerge as a global/national leader in the sectors in

which the Group operates”

News Article’s

“Over the years Mr. Birla has acquired manufacturing plants in Canada, China,

Indonesia, plantations in Laos, and mines in Australia, set up new plants in Egypt,

Thailand and China. Alongside, he has expanded capacities in all of the Group's

manufacturing units”

“Under his stewardship, the Aditya Birla Group enjoys a position of leadership in all

the major sectors in which it operates”

“Over the years, Mr. Birla has built a highly successful meritocratic organisation,

anchored by an extraordinary force of 133,000 employees belonging to 42 different

nationalities”

T O B E A P R E M I U M G L O B A L C O N G L O M E R A T E W I T H A C L E A R F O C U S O N E A C H B U S I N E S S

Vision

• I N T E G R I T Y

• C O M M I T M E N T

• P A S S I O N

• S E A M L E S S N E S S

• S P E E D

Values

W E H A V E T R I E D T O A N A L Y Z E T H E L E A D E R S H I P A T T R I B U T E S & R E L A T E D

S U C C E S S F A C T O R S B A S E D O N N E W S A R T I C L E ’ S

Leadership Analysis

Leadership - Analysis

Business Acumen

Traits & Characteristic

Skills & Abilities

Behaviour

Business Acumen

Value Creation & Growth

“Mr. Birla took over as Chairman of the Group in 1995; In the process he has

raised the Group's turnover from US$ 2 billion in 1995, to US$ 35 billion today.”

“Mr. Birla has restructured the businesses to emerge as a global/national leader in

the sectors in which the Group operates”

Execution

“He unified his diverse companies under the Aditya Birla Group head. "If one were

to encapsulate it (the group strategy) in a single word - the dominant strategic

theme over the past four years has been consolidation," says Birla”

Traits

High Energy levels & Stress Tolerance

Physical Vitality & Emotional resilience

“He has made 22 acquisitions in 17 years in India and globally,

the highest by an Indian multinational in India”

Self Confidence & Internal Locus of Control

“Under his stewardship, the Aditya Birla Group enjoys a position

of leadership in all the major sectors in which it operates”

Traits

Emotional Maturity

“Birla Group--- he has focused on fine tuning the group's talent

pool. If this meant taking hard decisions Birla did not shy away.

More than 350 senior managers left the group”

Value Based

“The group is considered among the top 20 preferred employers in

Asia.”

Skills

Global mindset

“Over the years Mr. Birla has acquired manufacturing plants in Canada,

China, Indonesia, plantations in Laos, and mines in Australia, set up

new plants in Egypt, Thailand and China. Alongside, he has expanded

capacities in all of the Group's manufacturing units”

Attention to Detail

“Kumar Mangalam Birla works "normal Bombay hours", except that he

is also in office on Saturdays and half of Sundays. On each of those days,

he would like to know how much cash came into his group and how

much went out. Not turnover, not profit. Cash”

Skills

Interpersonal Skills & Speaking ability

“People skills are Birla's biggest strength. He has the ability to get

on with both the old guard and the new turks. Soft spoken and

insistent Birla likes to be directly involved”

Technical Skills

“Mr. Birla has restructured the businesses to emerge as a

global/national leader in the sectors in which the Group operates”

Skills

Conceptual Skills & Analytical ability

“Birla is his father's son, but he has gradually developed his own personal

management style. Commonalities include performance orientation, a strict

eye for detail, close attention to budgets. Differences include more informal

interaction with managers from top to bottom; a greater gap between

personal and office life; and a strong emphasis on financial performance”

Persuasiveness

“But I was so overawed with his simplicity, his genuineness, and his ability

to explain simple things without trying to sell the job. If I had to take that

decision all over again I'd do the same.“----an employee says

Behaviour

The High-High leader (High Performance & High relationship oriented

Behaviour)

“A 360 degree feedback program that allows managers to question even Birla's own

leadership style and does away with the 'babu culture' prevalent in the group. But while on

one hand Birla nurtures employees, on the other he is very careful about performance

measures”

“Birla is equally adamant about strict adherence to policies and procedures that have been

discussed and approved”

Supporting

“He sends individual notes to employees regarding their performance”

Behaviour-Developing & Recognizing

"Management means attracting talented people, nurturing them, developing them, and

giving them space," asserts Birla, "decisions need to be made at every level and decisions

need to be quick. So, we have to spot, incubate and groom talent at every level of the

organization, because more people need to be making high quality decisions."

Birla has created a system based on meritocracy.

His HR initiatives fall under three broad heads: learning and relearning, performance management and organizational

renewal. For example Gyanodaya, the group's learning center falls in the first category. It helps in the transfer of best

practices across group companies thus sharpening the group's competitive edge.

Birla has also instituted 'The Organizational Health Survey (OHS)' which tracks the satisfaction levels of 8,670 managers

across the group.

The group is considered among the top 20 preferred employers in Asia.

For performance management Birla instituted the Aditya Birla Sun awards an annual internal awards system. Birla

believes that star performers need appreciation and recognition. "It is very important for people who are doing well to be

told they are doing well," he says.

Delivering results

Managing Conflict

“People skills are Birla's biggest strength. He has the ability to get on

with both the old guard and the new turks. Soft spoken and insistent

Birla likes to be directly involved”

Managing across organizational boundaries

“Over the years, Mr. Birla has built a highly successful meritocratic

organization, anchored by an extraordinary force of 133,000 employees

belonging to 42 different nationalities”

Way Forward

Thank You