TRANSFORMATIONAL TRANSFORMATIONAL LEADERSHIP ILEADERSHIP I

BYBYDR SATYANARAYANA DASHDR SATYANARAYANA DASHEX-ACTG CHAIRMAN, STATE EX-ACTG CHAIRMAN, STATE ADMINISTRATIVE TRIBUNAL, ADMINISTRATIVE TRIBUNAL,

ODISHAODISHA

LEADERSHIP MANAGEMENTLEADERSHIP MANAGEMENT1.Search for Qualities of Leadership1.Search for Qualities of Leadership• Plato’s “Republic” & Plutarch’s “Lives”Plato’s “Republic” & Plutarch’s “Lives”• Thomas Carlyle (1841)– “Heroes & Hero Thomas Carlyle (1841)– “Heroes & Hero

Worship”Worship”• Francis Galton (1869)- “ Hereditary Francis Galton (1869)- “ Hereditary

Genius”Genius”• Traits of Leadership : Intelligence, Traits of Leadership : Intelligence,

Dominance, adaptability, integrity, self Dominance, adaptability, integrity, self confidenceconfidence

ALTERNATIVE THEORIES OF ALTERNATIVE THEORIES OF LEADERSHIPLEADERSHIP• Trait Theory of Leadership endured Trait Theory of Leadership endured

for about a Centuryfor about a Century• 1940’s & 50’s – Bird, Stogdil & Mann 1940’s & 50’s – Bird, Stogdil & Mann

came out with alternative theoriescame out with alternative theories• Leader in one situation may not be a Leader in one situation may not be a

leader in anotherleader in another• Situational Theories of LeadershipSituational Theories of Leadership

RE EMERGENCE OF TRAIT RE EMERGENCE OF TRAIT THEORYTHEORY• Statistical Advances contributed to Statistical Advances contributed to

Quantitative rather than Qualitative Quantitative rather than Qualitative ReviewReview

• Leadership related to intelligence, Leadership related to intelligence, openness to experience,general self-openness to experience,general self-efficacy,conscientiousness,adjustmentefficacy,conscientiousness,adjustment

• Deficiencies: limited Deficiencies: limited attributes,behavioural diversitiesattributes,behavioural diversities

ATTRIBUTE PATTERN ATTRIBUTE PATTERN APPROACH TO LEADERSHIPAPPROACH TO LEADERSHIP• Based on integrated totality of traits rather Based on integrated totality of traits rather

than summation of individual traitsthan summation of individual traits• Explains the variances in both leader Explains the variances in both leader

emergence and leadership effectivenessemergence and leadership effectiveness• Behavioural & Style theories– David McClelland Behavioural & Style theories– David McClelland

& Kevin Mick- strong personality, positive ego, & Kevin Mick- strong personality, positive ego, self-confidence and high self esteemself-confidence and high self esteem

• Robert Blake’s Managerial Grid Model –concern Robert Blake’s Managerial Grid Model –concern for people & concern for Productionfor people & concern for Production

• B.F.Skinner’s Positive Reinforcement Model B.F.Skinner’s Positive Reinforcement Model

SITUATIONAL & CONTINGENCY SITUATIONAL & CONTINGENCY THEORYTHEORY• Leader’s role is a function of the situation he is Leader’s role is a function of the situation he is

inin• Fred Fiedler’s Situational Contingency Model --- Fred Fiedler’s Situational Contingency Model ---

Relationship oriented, Task orientedRelationship oriented, Task oriented• Victor Vroom, Phillip Yeton Arthur Jago’s (1988) Victor Vroom, Phillip Yeton Arthur Jago’s (1988)

Normative Decision Model & situational Normative Decision Model & situational contingency theorycontingency theory

• Robert House’s Path-Goal Theory (1971)-Robert House’s Path-Goal Theory (1971)-Achievement oriented, Directive,participative Achievement oriented, Directive,participative and supportive – complements attributes of the and supportive – complements attributes of the subordinates subordinates

FUNCTIONAL THEORY OF FUNCTIONAL THEORY OF LEADERSHIPLEADERSHIP• TRANSACTIONAL LEADERS– empowered to TRANSACTIONAL LEADERS– empowered to

achieve specific tasks—evaluate, correct and achieve specific tasks—evaluate, correct and train subordinates, Burns (1978)train subordinates, Burns (1978)

• TRANSFORMATIONAL LEADFERS– motivates the TRANSFORMATIONAL LEADFERS– motivates the team to be efficient and effective– leader highly team to be efficient and effective– leader highly visible ans charismatic, Burns (1978)visible ans charismatic, Burns (1978)

• Neo emergent Theory– Leader is created by the Neo emergent Theory– Leader is created by the image created by print, electronic media & image created by print, electronic media & blogsblogs

• Fleishman’s Functional Theory:(1) Consideration Fleishman’s Functional Theory:(1) Consideration (2) Initiating Structure (1953)(2) Initiating Structure (1953)

STYLES OF LEADERSHIPSTYLES OF LEADERSHIP• AUTOCRATICAUTOCRATIC• DEMOCRATICDEMOCRATIC• LAISSEZ FAIRELAISSEZ FAIRE• NARCISSISTICNARCISSISTIC• TOXICTOXIC• GROUP LEADERSHIP—Purpose, Priorities, GROUP LEADERSHIP—Purpose, Priorities,

Roles, Decisions,Conflict, Personal traits, Roles, Decisions,Conflict, Personal traits, Norms, Effectiveness, Success & TrainingNorms, Effectiveness, Success & Training

LEADERSHIP POWERSLEADERSHIP POWERS• Legitimate PowerLegitimate Power• Reward PowerReward Power• Coercive PowerCoercive Power• Expert PowerExpert Power• Charisma PowerCharisma Power• Referent PowerReferent Power• Information PowerInformation Power

Sun Tzu’s DEFINITIONSun Tzu’s DEFINITION• Leadership is a matter of intelligence, Leadership is a matter of intelligence,

trustworthiness,humaneness,courage and trustworthiness,humaneness,courage and discipline --- Reliance on intelligence alone discipline --- Reliance on intelligence alone results in rebelliousness.Exercise of results in rebelliousness.Exercise of humaneness alone results in weakness. humaneness alone results in weakness. Fixation on trust results in folly.Dependence Fixation on trust results in folly.Dependence on the strength of courage results in on the strength of courage results in violence. Excessive discipline and sternness violence. Excessive discipline and sternness in command results in cruelty. When one has in command results in cruelty. When one has all five virtues together, each appropriate to all five virtues together, each appropriate to its function, then one can be a leader.its function, then one can be a leader.

THEORY OF CHANGE THEORY OF CHANGE MANAGEMENTMANAGEMENT• Change must involve peopleChange must involve people• Understand current position of the Understand current position of the

OrganisationOrganisation• Understand the target position of the Understand the target position of the

OrganizationOrganization• Plan Development to achieve the targetPlan Development to achieve the target• Communicate, involve,enable and Communicate, involve,enable and

facilitate involvement of the peoplefacilitate involvement of the people

JOHN P KOTTER’S EIGHT STEPSJOHN P KOTTER’S EIGHT STEPS

• John P. Kotter’s “Leading Change” (1995) and “Heart Of John P. Kotter’s “Leading Change” (1995) and “Heart Of Change”(2002)Change”(2002)

• Increase Urgency– Inspire People to moveIncrease Urgency– Inspire People to move• Build the guiding Team– Get right people in placeBuild the guiding Team– Get right people in place• Get the Vision Right—Establish simple vision & strategyGet the Vision Right—Establish simple vision & strategy• Communicate for Buy-in– Declutter CommunicationCommunicate for Buy-in– Declutter Communication• Empower Action—Remove obstaclesEmpower Action—Remove obstacles• Create short term Wins—Set easily achievable aimsCreate short term Wins—Set easily achievable aims• Don’t Let Up– Be persistentDon’t Let Up– Be persistent• Make Change Stick—Reinforce value of successful Make Change Stick—Reinforce value of successful

ChangeChange

JOHN FISHER’S MODEL OF JOHN FISHER’S MODEL OF PERSONAL CHANGEPERSONAL CHANGE• AnxietyAnxiety• HappinessHappiness• FearFear• ThreatThreat• GuiltGuilt• DisillusionmentDisillusionment• HostilityHostility• DenialDenial

PROCESS OF CHANGEPROCESS OF CHANGE• Change provoked by a CrisisChange provoked by a Crisis• Gentle Persuasion Of Employees rather Gentle Persuasion Of Employees rather

than Forcethan Force• Lead by ExampleLead by Example• No single change can please everybodyNo single change can please everybody• Time soften effects of changeTime soften effects of change• Change must be reasonable & Change must be reasonable &

manageablemanageable

CHANGE DUE TO CHANGE DUE TO OUTSOURCING & IT OUTSOURCING & IT DEVELOPMENTDEVELOPMENT• Clarify Mutual expectationsClarify Mutual expectations• Agree to expectations on a pragmatic basisAgree to expectations on a pragmatic basis• Make Overview AnalysisMake Overview Analysis• Enable jobs to be broken down into sub-tasks Enable jobs to be broken down into sub-tasks

and elements within sub-tasksand elements within sub-tasks• Task analysis should indicate Standards, Task analysis should indicate Standards,

Performance tolerance & Percentage Performance tolerance & Percentage ReliabilityReliability

• Patience & Tolerance Patience & Tolerance

BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT DRIVEN CHANGEDRIVEN CHANGE• Depends on Promoters or CEODepends on Promoters or CEO• No unique strategy for Change No unique strategy for Change

ManagementManagement• Could lead to Sales Development, New Could lead to Sales Development, New

Product Development, New Market Product Development, New Market Development, Supply Chain DevelopmentDevelopment, Supply Chain Development

• Peoples’ Capacity DevelopmentPeoples’ Capacity Development• Strategic Partnership DevelopmentStrategic Partnership Development• International Development International Development

CHANGE IN A DYNAMIC CHANGE IN A DYNAMIC ENVIRONMENTENVIRONMENT• Plan long term broadlyPlan long term broadly• Establish Forums for intermediate Establish Forums for intermediate

reviews & communicationsreviews & communications• Empower people sufficientlyEmpower people sufficiently• Remove highly conservative and ultra Remove highly conservative and ultra

cautious executivescautious executives• Create virtual teams and matrix Create virtual teams and matrix

managementmanagement• Scrutinise & optimise ICTScrutinise & optimise ICT

PROCESS OF CORPORATE PROCESS OF CORPORATE TRANSFORMATIONTRANSFORMATION• PRINCIPLESPRINCIPLES• Every One is both Actor & Observer—Every One is both Actor & Observer—

Ronald A. Heifetz’s Model of a “Dance Ronald A. Heifetz’s Model of a “Dance Floor” and a “Balcony”Floor” and a “Balcony”

• Each Individual crosses a threshold of Each Individual crosses a threshold of conviction--- seek answers to the question conviction--- seek answers to the question of “Why…. ?” and “Why now…….?”, of “Why…. ?” and “Why now…….?”, “Where to….?”, “What is in it for me….?”“Where to….?”, “What is in it for me….?”

PROCESS OF CORPORATE PROCESS OF CORPORATE TRANSFORMATION (CONTD.)TRANSFORMATION (CONTD.)• Everyone must cross the threshold of Everyone must cross the threshold of

experience--- learning Heart Surgery, Golf or experience--- learning Heart Surgery, Golf or Cookery not from book but by personal Cookery not from book but by personal experienceexperience

• The Process must balance Redundancy & The Process must balance Redundancy & Control---Reduce possibilities of mistakes and Control---Reduce possibilities of mistakes and surprises – Never leave the process half way---- surprises – Never leave the process half way---- leaders could have a close look at the dance leaders could have a close look at the dance floor from the balcony – link compensation to floor from the balcony – link compensation to Programme’s success.Programme’s success.

CRISIS & TRANSFORMATIONCRISIS & TRANSFORMATION• Crisis in an Organization creates a “Story” Crisis in an Organization creates a “Story”

leaders could screenply to convince employeesleaders could screenply to convince employees• Non Crisis situations will always make the Non Crisis situations will always make the

employees ask “Why….?”—Difficult to answeremployees ask “Why….?”—Difficult to answer• Transformation story: (1) Analyse why crisis Transformation story: (1) Analyse why crisis

happened? (2) Find the solution—a new product, happened? (2) Find the solution—a new product, a process, quality standard, a technology or a a process, quality standard, a technology or a management model (3) Define the Picture– management model (3) Define the Picture– Where the Company is heading?Where the Company is heading?

CRISIS & TRANSFORMATION CRISIS & TRANSFORMATION (CONTD.)(CONTD.)• How Can the Company Reach the Goal?How Can the Company Reach the Goal?• Leader’s experience must be internalised Leader’s experience must be internalised

by the employees--- Identity Transitionby the employees--- Identity Transition• Orchestrate thousands of individual Orchestrate thousands of individual

identity transitionsidentity transitions• Make the story real – convince employees Make the story real – convince employees

the logic of this transformationthe logic of this transformation

THE CHALLENGE OF THE CHALLENGE OF TRANSFORMATIONTRANSFORMATION• Powerful Central Group to initiatePowerful Central Group to initiate• Individuals takeover thereafterIndividuals takeover thereafter• Central Definition & Management required in Central Definition & Management required in

highly critical situationshighly critical situations• Cascade Practice: Each round of discussion Cascade Practice: Each round of discussion

involves new employees in involves new employees in meetings/workshops– lower end employees meetings/workshops– lower end employees may not fully appreciate the story or concernsmay not fully appreciate the story or concerns

• Mention Past Glory or strategy in similar Mention Past Glory or strategy in similar organizationsorganizations

NEW APPROACHES TO NEW APPROACHES TO CORPORATE CORPORATE TRANSFORMATIONTRANSFORMATION• St Luke Advertising Agency, UK--- Joint Agency Client St Luke Advertising Agency, UK--- Joint Agency Client

Rooms – Access anytimeRooms – Access anytime• Ford Motor Co: Identity Transition through a “Teachable Ford Motor Co: Identity Transition through a “Teachable

Point Of View”– Workshop of Employees to form their Point Of View”– Workshop of Employees to form their own “Teachable Point Of View” – similar to cascade own “Teachable Point Of View” – similar to cascade process with prescribed detailed instructionsprocess with prescribed detailed instructions

• Johnson & Johnson--- FrameworkS- 10 to 12 persons are Johnson & Johnson--- FrameworkS- 10 to 12 persons are invited to become part of executive committee with 9 invited to become part of executive committee with 9 permanent members and brainstorm in a remote permanent members and brainstorm in a remote location for a week– subcommittees and task forces to –location for a week– subcommittees and task forces to –ultimate discussions with Ralph Larsen, the CEOultimate discussions with Ralph Larsen, the CEO

• All these Processes involve CATALYTIC OBJECTS All these Processes involve CATALYTIC OBJECTS

CATALYTIC OBJECTSCATALYTIC OBJECTS• These catalytic Objects transfer and These catalytic Objects transfer and

create experience of transformation create experience of transformation story in the mind of the employeesstory in the mind of the employees

• They can be centrally shaped and They can be centrally shaped and their development centrally their development centrally monitoredmonitored

• They form the Bridge between They form the Bridge between Executive suite and the frontline.Executive suite and the frontline.

TRANSFORMATIONAL LEADERSTRANSFORMATIONAL LEADERS

• Lou Gerstner -- IBMLou Gerstner -- IBM• John Reed– CitibankJohn Reed– Citibank• Ferdinand Piech– AudiFerdinand Piech– Audi• Jack Welch– General ElectricJack Welch– General Electric• Steve Jobs--- AppleSteve Jobs--- Apple• Akio Morita-- SonyAkio Morita-- Sony

INDIAN EXAMPLESINDIAN EXAMPLESANDREW YULE & COMPANY ANDREW YULE & COMPANY LIMITED (AYCL)LIMITED (AYCL)• Established in 1863Established in 1863• Came under Government Of India in Came under Government Of India in

May,1979May,1979• Declared sick by BIFR in 2004Declared sick by BIFR in 2004• BIFR approved Revival Package in BIFR approved Revival Package in

October 2007October 2007• Listed at Bombay Stock ExchangeListed at Bombay Stock Exchange

AYCL- TURNAROUND AYCL- TURNAROUND STRATEGYSTRATEGY• Sell off non-performing assets: shares in Sell off non-performing assets: shares in

Phoenix Yule Limited (PYL) & Dishergarh Phoenix Yule Limited (PYL) & Dishergarh Power Supply Company Limited (DPSC)Power Supply Company Limited (DPSC)

• Create an environment of trust, Create an environment of trust, openness and encouragementopenness and encouragement

• Payment of wages, salaries & statutory Payment of wages, salaries & statutory dues in timedues in time

• Disputes with the Union ssettledDisputes with the Union ssettled

AYCL STRATEGYAYCL STRATEGY• Extensive discussions with Employees Extensive discussions with Employees

on Turnaround Strategyon Turnaround Strategy• Quality, Promptness of delivery & Cost Quality, Promptness of delivery & Cost

ManagementManagement• Focus on Extensive 15 Tea Gardens in Focus on Extensive 15 Tea Gardens in

Assam & West Bengal– Rejuvenation Assam & West Bengal– Rejuvenation of Old Plantations– looking after of Old Plantations– looking after 14500 workers14500 workers

AYCL STRATEGY (CONTD.)AYCL STRATEGY (CONTD.)• Quality upgradation led to Tea prices fetching Quality upgradation led to Tea prices fetching

Rs.150 per Kg against Rs.75 per Kg earlierRs.150 per Kg against Rs.75 per Kg earlier• Quality Vision – to be among Top 20 gradesQuality Vision – to be among Top 20 grades• Extensive Uprooting & Replantation Extensive Uprooting & Replantation

Programme leading to higher productivityProgramme leading to higher productivity• Revamping of Engineering & Electrical Revamping of Engineering & Electrical

Division– Process Upgradation & improvementDivision– Process Upgradation & improvement• Marketing Activities were strengthened & Marketing Activities were strengthened &

timely delivery ensured timely delivery ensured

AYCL STRATEGYAYCL STRATEGY• AYCL transformed from a sick company to growth-AYCL transformed from a sick company to growth-

oriented Company oriented Company 2006-07 2007-08 2010-112006-07 2007-08 2010-11 (Rupees in Crores) (Rupees in Crores)

Turnover 146.68 182.71 239.46Turnover 146.68 182.71 239.46 PBDIT (-) 46.46 31.93 63.37PBDIT (-) 46.46 31.93 63.37 PBT (-) 90.11 8.61 42.41PBT (-) 90.11 8.61 42.41PBT for 2013-14 at Rs.25.47 Cr with PAT Rs.22 Crores PBT for 2013-14 at Rs.25.47 Cr with PAT Rs.22 Crores

HEAVY ENGINEERING HEAVY ENGINEERING CORPORATION (HEC)CORPORATION (HEC)• Set up in 1958 to help establish Steel Set up in 1958 to help establish Steel

PlantsPlants• Made losses in all the years except Made losses in all the years except

1975-76,1976-77 & 1988-891975-76,1976-77 & 1988-89• BIFR orders closure of the Company on BIFR orders closure of the Company on

06.07.200406.07.2004• Appeal to AAIFR By the Company & the Appeal to AAIFR By the Company & the

Department of Heavy IndustryDepartment of Heavy Industry

HEC (CONTD.)HEC (CONTD.)• HEC filed writ petition in Jharkhand High HEC filed writ petition in Jharkhand High

CourtCourt• Power Supply to HEC township Power Supply to HEC township

transferred to Jharkhand State Electricity transferred to Jharkhand State Electricity Board with effect from 01.12.2004Board with effect from 01.12.2004

• Company submitted a Revival Plan to Company submitted a Revival Plan to Ministry & BRPSEMinistry & BRPSE

• BRPSE approves the Plan on 07.10.2005 BRPSE approves the Plan on 07.10.2005 & Govt on 15.12.2005& Govt on 15.12.2005

HEC (CONTD.)HEC (CONTD.)• 2005 Turnaround Plan was not a 2005 Turnaround Plan was not a

success because of the following factorssuccess because of the following factors --Acute shortage of working capital--Acute shortage of working capital --1992 Scales of Pay--1992 Scales of Pay --Demoralisation among employees--Demoralisation among employees --Manpower mismatch—VRS--Manpower mismatch—VRS --33 Trade Unions--33 Trade Unions -- Lack of Timely Delivery-- Lack of Timely Delivery

HEC TRANSFORMATION HEC TRANSFORMATION STRATEGYSTRATEGY• Payment of Ad hoc amount to workersPayment of Ad hoc amount to workers• September 2008 Revival Package September 2008 Revival Package

allowed 1997 Pay Revision & increase in allowed 1997 Pay Revision & increase in Super annuation Age from 58 to 60 yearsSuper annuation Age from 58 to 60 years

• Reduction in number of Trade Unions Reduction in number of Trade Unions from 33 to 4from 33 to 4

• Extensive Management Interaction with Extensive Management Interaction with the Employeesthe Employees

HEC TRANSFORMATION HEC TRANSFORMATION STRATEGYSTRATEGY• Upgradation of Central Foundry & Forge Upgradation of Central Foundry & Forge

Plant (CFFP), Heavy Machine Building Plant (CFFP), Heavy Machine Building Plant (HMBP) & Heavy Machine Tools Plant (HMBP) & Heavy Machine Tools Plant (HMTP) – installation of 5 Tonne Plant (HMTP) – installation of 5 Tonne Induction Furnace & Planned Preventive Induction Furnace & Planned Preventive MaintenanceMaintenance

• Timely & Quality Delivery to CustomersTimely & Quality Delivery to Customers

HEC TRANSFORMATION HEC TRANSFORMATION STRATEGYSTRATEGY• Marketing strategy on Quality Niche Marketing strategy on Quality Niche

Products – 5 CuM & 10 CuM Shovels, Products – 5 CuM & 10 CuM Shovels, Heavy Duty Cranes, Railway Machine Heavy Duty Cranes, Railway Machine Tools & Deep Hole Drilling ToolsTools & Deep Hole Drilling Tools

• Coal Handling & Ore Handling Projects, Coal Handling & Ore Handling Projects, Steel Plant Rolls, Heavy Steel CastingsSteel Plant Rolls, Heavy Steel Castings

• Forgings for Nuclear usage & Space Forgings for Nuclear usage & Space ApplicationsApplications

HEC GROWTHHEC GROWTH• FINANCIALSFINANCIALS

2006-07 2010-11 2012-132006-07 2010-11 2012-13 (Rupees in Crores)(Rupees in Crores) TURNOVER 303.90 681.29 739.71TURNOVER 303.90 681.29 739.71

OP PROFIT 13.15 45.64 12.21OP PROFIT 13.15 45.64 12.21

BHARAT HEAVY ELECTRICALS BHARAT HEAVY ELECTRICALS LIMITED (BHEL)LIMITED (BHEL)• Started in 1950’s --Manufactures Power Started in 1950’s --Manufactures Power

Generation Equipment– Generators & Generation Equipment– Generators & Boilers,Industrial Boilers, Transformers, Boilers,Industrial Boilers, Transformers, Distribution & Transmission EquipmentDistribution & Transmission Equipment

• Making Profit since Inception– Turnover—Making Profit since Inception– Turnover—Rs.43451 Crore (2010-11),Net Profit– Rs.43451 Crore (2010-11),Net Profit– Rs.6021 Crore, (2014-15) TO 30806 Cr NP Rs.6021 Crore, (2014-15) TO 30806 Cr NP Rs1314 Cr, down 62% over 2013-14Rs1314 Cr, down 62% over 2013-14

• Order Book Position—Rs. 60507 Crore Order Book Position—Rs. 60507 Crore (2010-11), Cumulative-Rs.164130 Crore (2010-11), Cumulative-Rs.164130 Crore

BHEL (CONTD.)BHEL (CONTD.)• Commissioned 9442 MW of Power Commissioned 9442 MW of Power

Generating Equipment during 2010-11Generating Equipment during 2010-11• BHEL faces competition from Chinese BHEL faces competition from Chinese

suppliers and in the Domestic Market suppliers and in the Domestic Market from L & T- Mitsubushi, Bharat Forge-from L & T- Mitsubushi, Bharat Forge-Alsthom, BGR EnergyAlsthom, BGR Energy

• BHEL has adopted Strategic Planning BHEL has adopted Strategic Planning Process to face competition Process to face competition

BHEL (CONTD.)BHEL (CONTD.)• Six Priority AreasSix Priority Areas(1)(1)Timely Project DeliveryTimely Project Delivery(2)(2)Capacity Expansion to 20000 MW Capacity Expansion to 20000 MW (3)(3)Product Cost Competitiveness & QualityProduct Cost Competitiveness & Quality(4)(4)DiversificationDiversification(5)(5)Engineering & TechnologyEngineering & Technology(6)(6)People DevelopmentPeople Development

BHEL (CONTD.)BHEL (CONTD.)• Communication of Strategy to Key Communication of Strategy to Key

Constituents– Employees Forum, Customer’s Constituents– Employees Forum, Customer’s Meet, AGM, Investors’ MeetMeet, AGM, Investors’ Meet

• Monitor strategy execution & accountability– Monitor strategy execution & accountability– The strategic Plan is discussed with employees The strategic Plan is discussed with employees at various levels and individual targets fixedat various levels and individual targets fixed

• Variable part of executive compensation Variable part of executive compensation related to achievement of individual goalsrelated to achievement of individual goals

• Adjustment of strategy to market conditions if Adjustment of strategy to market conditions if requiredrequired

BHEL (CONTD.)BHEL (CONTD.)• Technology Change---Bhel spent Technology Change---Bhel spent

Rs.1005 Crore on R & D in 2010-11 – Rs.1005 Crore on R & D in 2010-11 – 2.3% of Turnover2.3% of Turnover

• Filed 303 Patents and copyrights– Filed 303 Patents and copyrights– cumulative 1438 Patentscumulative 1438 Patents

• Got a breakthrough order from PGCIL Got a breakthrough order from PGCIL for 800 KV 6000 MW Ultra High Voltage for 800 KV 6000 MW Ultra High Voltage Multi Terminal DC Transmission Link in Multi Terminal DC Transmission Link in collaboration with ABB, Swedencollaboration with ABB, Sweden

BHEL StrategyBHEL Strategy• IMPRESS (Improvement Process Rewards IMPRESS (Improvement Process Rewards

Scheme)– recognize, nurture & reward Scheme)– recognize, nurture & reward innovations– Cash Rewards, Appreciation innovations– Cash Rewards, Appreciation Letters, Public felicitation & in house journal Letters, Public felicitation & in house journal publicationpublication

• Leadership Development—Core Programmes Leadership Development—Core Programmes of HRDI, Focussed Programmes of HRDI, of HRDI, Focussed Programmes of HRDI, Mentoring, Cross-Functional Teams, Mentoring, Cross-Functional Teams, Programmes at Units/DivisionsProgrammes at Units/Divisions

BHEL (CONTD.)BHEL (CONTD.)• HRDI Core Programmes– EDP (E1-E4), Self HRDI Core Programmes– EDP (E1-E4), Self

Starters’ Programme (E2), Young Manager’s Starters’ Programme (E2), Young Manager’s Programme (E3-E4), General Management Programme (E3-E4), General Management Programme (E5-E6), Middle Management Programme (E5-E6), Middle Management Programmes (E4-E6),Strategic Management Programmes (E4-E6),Strategic Management Programmes (Sr DGMs & AGMs– Leadership Programmes (Sr DGMs & AGMs– Leadership Labs)Labs)

• HRDI Focussed Programmes– Strategic HRDI Focussed Programmes– Strategic Thinking, Team Work, Creative Problem Thinking, Team Work, Creative Problem Solving, Communication Skills, Values Lab, Solving, Communication Skills, Values Lab, Leadership ExcellenceLeadership Excellence

BHEL (CONTD.)BHEL (CONTD.)• Mentoring—compulsory for all new Mentoring—compulsory for all new

executives– 1000 Mentors trained in executives– 1000 Mentors trained in 2008-09 & 2009-102008-09 & 2009-10

• Units/Division Programmes– on Units/Division Programmes– on Leadership DevelopmentLeadership Development

• Nomination to External ProgrammesNomination to External Programmes• Cross-Functional Teams– Teams from Cross-Functional Teams– Teams from

different functions work together.different functions work together.

THANKS THANKS

THE ENDTHE END