By Mr. Kumar
Mangalam Birla
Chairman, Aditya Birla Group
The Economic Times
10 August 2009
 |
The key to becoming global is to create leaders
who can manage global businesses. I mean, leaders
who have the ability to be effective across
geographies, nationalities and cultures
leaders who excel at collaboration, innovation
and managing change. In our experience of the
last 15 years, these are individuals born with
certain traits, but moulded into becoming global
leaders, through experience, coaching and supporting
teams.
Being a true-blue MNC is only partly about geographic
spread. It is relatively simple to address cross-border
issues pertaining to technology, finance, markets
and products. But extremely difficult to cope
up with challenges relating to the human dimension.
Global leadership is all about developing a
mindset that wants to leverage resources seamlessly,
across geographic boundaries. A mindset that
is eager to build unique capabilities, to transcend
the barriers of cultures in order to create
value. Its about being global in attitudes
but without letting go of your roots.
One of the major challenges that we have had
to grapple with is developing sensitivity and
respect for cultural differences. For instance,
in India the workday can stretch to 10 or 12
hours. Our Indian expats would often bemoan
the employees in Canada who troop out sharp
at 5 pm. But we need to remember that in those
countries its more important that you
work efficiently between nine and five. Its
the organisations task to change these
biases and to see that these blind spots do
not affect the judgement of an employees
merit or performance.
The cultural shocks show up everywhere. For
example, in our Group, an Indian manager who
moves to Thailand takes time to adjust to the
fact that the nightshift has only women workers,
something that would, until recently, have been
illegal in India. But without exception, our
global leaders have always excelled at the skill
of adaptation to cultural nuances, and to the
local milieu. Another major challenge we grappled
with is acceptance and establishing a brand
equity outside India. I believe Indian companies
will take some time to move up the ladder on
both these scores. I say this based on our own
experience, particularly in South-East Asia,
where we have been operating for over four decades.
Our Group has established strong brand equity
through years of hard work and sustained performance,
following best employment practices and being
a good corporate citizen.
When foraying into new economies, the story
is different. Let me share our experience of
acquiring the A V Nackawic Pulp Plant in the
Province of New Brunswick in Canada three years
ago. This pulp mill had been shut for four years.
We had to convince and win over diverse constituencies.
Our team had to make presentations to groups
of the local community, whose livelihood depended
to a large extent on restarting the plant. Our
team effectively allayed all fears. By the end
of the process, the employees were convinced
that they would rather work for an Indian multinational
with credibility than for the local company
that presided over its shutdown earlier. Our
acquisition team was taken to the provincial
Parliament where they received a standing ovation.
The hallmark of our overall leadership development
efforts has been our belief in taking bets
on our people. This largely stems from
our innate trust in peoples ability to
stretch and learn. Our entrepreneurial DNA also
encourages risk taking which includes taking
risks with people. We believe that people are
endowed with immense capability our task
is to spot them early in their careers and provide
them with suitable opportunities to test their
skills. I would like to share two of our leadership
development initiatives.
One, our leadership development initiatives
are specifically tailored to the business context.
We have articulated for ourselves who a global
manager is for us, what leadership talent looks
like, and what kind of leadership talent we
need. This is done to provide clarity to all
our leadership role aspirants to benchmark themselves
against desired standards and monitor their
progress.
Two, a rigorous assessment process across the
Group assesses people early in their career
on their potential to hold leadership roles.
This pool of talent is developed through a series
of planned exposures, assignments and training
opportunities so that they are prepared to take
on leadership roles as and when these emerge.
The first critical component of becoming global
is to create leaders with global mindsets. And
the second component: values, vision, passion,
commitment and ambition count most. In the mid-1960s,
a young man, a freshly minted graduate from
MIT, felt strapped by the tyranny of the licence
raj in India. Rather than wallow in self-pity,
my father, Aditya Vikram Birla set his sights
outside India on South- East Asia. Over the
next three decades he made significant on-the-ground
investments across the South-East Asian region,
earning immense respect for both himself and
his country. And, this was long before globalisation
was even part of our lexicon. It was sheer enterprise
and looking back now, clairvoyance.
At a business level, let me also recount an
instance of how dedication, commitment and high
morale can translate into results at the ground
level. Our Thai Carbon Black factory is located
at Angthong, just outside Bangkok, and is one
of the largest in the world and a pioneer in
carbon black technology. Carbon black is the
major raw material for tyres. Not surprisingly
it is an important supplier to the largest tyre
companies in the world.
Three years ago, Angthong experienced torrential
rains and all the factories in the vicinity,
without exception, had to shut down. The management
and workmen of our unit were, however, determined
to make shipments on time to a customer who
was in the midst of critical testing for new
technology tyres. A truly committed team of
workmen and managers took charge. They used
wood from the crates used to supply carbon black
to make canoes that they steered through the
water to meet their supply commitments. This
kind of resourcefulness is way above and beyond
the call of duty. Its inspirational.

|