Mr P M Kumar Presentation 130111

1. Institution Building15 January 20111Presentation by P M KumarMember Group Holding Board Business Chairman - Group Corporate Development

2. Institution Building ProcessSENTIENT PROCESSCollective Feelings HOW WE FEELFocus onMobilization &BelongingFocus inEmpowermentInstitutionBuilding“The Psychological Contract”STRUCTURAL ANCHOR(WHAT WE DO )Vision- Strategy-Structure- Roles-KRAs- Rewards etc.INSTITUTIONAL ANCHORWHO WE AREPhilosophy -,Mission-Values- FoundersPromoters’ History- Identity-’ Persona’ & BrandFocus onEfficiency/ROCEProductivity etc.FocusOn RenewalBUSINESS PROCESSHOW WE DO WHAT WE DO2

3. Strategic ManagementGovernanceVisionValues & BeliefsCorporate Functions & capabilitiesLeadership development & Talent ManagementEmpowered OrganizationBusiness ExcellenceBuilding blocks of Institution buildingProcess driven management decision making with entrepreneurial spirit preserved

4. Long term growth plan

5. Risk measurement framework

6. Family Governance guided by Family Constitution

7. Corporate Governance

8. Group alignment to a common objective

9. Drive a uniform GMR culture

10. Social responsibility initiatives

11. Standardization of critical support functions

12. Improve processes to best-in-class – Corporate Procurement, Information Technology, Finance, Legal, Assurance

13. Group Function Councils

14. Corporate SustainabilityBuilding an Institution for perpetuityMatrix reporting structure

15. Senior Leadership Team (SLT) Forum

16. Delegation of Power – RASCI

17. Group Performance Advisory Council (GPAC)

18. Knowledge Management (KM)

19. Capability building

20. Succession planning

21. E-enabled Performance Management Process

22. Focus on Leadership, Stakeholders, Business Processes and Results

23. Malcolm Baldridge Framework3

24. Organizations & Institutions15 January 20114Organizations, when led with statesmanship and wisdom, mature into Institutions. The maturation process is an evolutionary and organic one, sustaining its relevance over time.An Institution is not only a set of traditions and time honored structures and norms - as is commonly understood. It is more - it is a 'gharana', a state of mind, a sense of belonging and ownership that is fundamentally "alive' in the minds of people and not in physical monuments & monoliths Organizations Vs Institutions15 January 2011World View & OutlookSome key variables of an organization….Environment Interface 1Leadership2Roles3Membership45…….How do they differ from Institution

25. World View & Outlook15 January 20116OrganizationsInstitutions1Defines itself primarily in the language of economics.

26. Primary focus is on strategy, structure, process, roles, tasks, and results.

27. Preoccupation with skills & results

28. Predominantly short term in orientation

29. Expedience and consequences are in focus

30. Defines itself as a living organic

31. Focus on mission, philosophy, aims, meaning, values, culture and belonging

32. Preoccupation with wisdom

33. Long term in approach and commitment

34. Convictions and values are in focusEnvironment Interface 15 January 201172OrganizationsInstitutionsEngagement with the environment is fragile, reactive and suspicious.

35. Are quick to adopt fads and fashions - Appear 'modern' to the observer.

36. Many are short lived

37. Are sensitive to their environments and are proactive

38. Are progressive - Appear staid.

39. Longevity is sustainableLeadership15 January 20118OrganizationsInstitutions3Leaders have to frequently explain their actions and defend their decisions. Suspicion and doubt about the intention of leaders is prevalent

40. Leaders lead the way

41. Succession is poor and ad hoc

42. They seek "partnership in clarity". Leaders want to be certain and clear in their communication.

43. Problems move upward to the leaders

44. Faith in the leadership is strong. The benefit of doubt goes to the leaders

45. Servant Leadership

46. The process for succession is robust and emphasizes a combination of continuity and change.

47. Leaders encourage and seek "partnership in ambiguity". They share their confusions and doubts with other members and invite ownership.

48. Proposals move upward to the leadersRolesOrganizationsInstitutions4Individuals 'protect' their role boundaries and functional jurisdiction

49. Inter-role spaces have no 'owners'. Many issues fall between two stools and the 'boss' orchestrates these through persuasion and arbitration.

50. Protocols are established to manage inter-role engagements

51. Members sustain each other's roles. Expertise permeates and spreads across roles

52. Inter role spaces are attended to. Members volunteer to do what needs to be done in the inter-role spaces and help each other when tasks and roles are hazy.

53. Sensitivity and awareness of what will make others succeed is often the basis of inter – role transactions. Win - win is important.15 January 20119

54. Membership5OrganizationsInstitutionsMembers operate largely from an 'economic' and /or a 'professional' contract. Their contributions are contracted for, bilateral by nature or mandated. 'Quid pro quo" is prevalent.

55. Members are contractual in their outlook. They take a rigid and unappreciative view of unexpected developments.

56. Members are concerned with individual and sect oral wellbeing. Their ambitions are self- centered.

57. Members operate from predominantly a 'psychological' contract. Their contributions are mostly voluntary and unilateral by nature.

58. Members are willing to be contextual in their view. They are tolerant of unexpected and idiosyncratic developments.

59. Members are sensitive to the common good. Their ambitions are directed towards the well being and success of the centred. institution.15 January 201110

60. Membership ContractsEconomic ContractProfessional ContractPsychological ContractFundamentally, there are 3 kinds of Membership contracts……The focus here is on money and life style.

61. The primary concern is about the nature of work. What will my role be?

62. The emphasis here is on the implicit psychological expectations.

63. The sense of belonging is rooted in this contract.231Every member of an Institution will act from all three contracts, to a lesser or higher degree.

64. 5 Strains of engagement and commitment15 January 201112Associate MembersSenior Management OrganizationsInstitutionsProfessional MembersMiddle ManagementInstitutional MembersJunior ManagementƔRate of Conversion Institutional Talent ManagementCo- Founders MembersSupport StaffFounder members

65. Founder Members15 January 201113They have dared to rebel or dream and sculpt their dream into a reality.1They embody the seminal idea, purpose and mission of the Institution.2They are able to invite and foster partnerships in a shared destiny.3Founder members are the gatekeepers between the Institution and the rest of the world.4They inspire, define and defend.5Their personal identity often gets fused with the Institutional identity and they have great difficulty in letting go and handing over to successors - They sometimes treat the Institution as their personal property.6Successors find it very difficult to take their place and 'fill the idolized gap'.7

66. Co -Founder MembersThey share the founder's dream.1They provide the much needed moral and psychological support and companionship to the founder.2Initially they may be seen as followers / disciples but very soon they command, within the Institution, a following of their own.3They are seen as role models and become mentors within the Institution.4This multiple sets of followers may fragment the Institution.5They act as gatekeepers between the founder and members of the Institution.6They amplify, codify and disseminate the fundamental principles, values and purpose of the Institution7When the founder does not let go, the co-founders may get disenchanted and their psychological contract may get ruptured.8As the Institution matures, they may have dreams of their own, experience suffocation and start another Institution, to become founders elsewhere9They often become involved in covert power struggles and sibling rivalry - First strains of 'rebellion' in the Institution may have a source here.1015 January 201114

67. Institutional Members15 January 201115These individuals join in at various points in the building of the Institution - either by invitation or by application.1They often represent the values of the Institution to the outer world. They are the 'valueholders'.2They almost always keep the Institution before themselves. They willingly go through inconvenience and harsh times for the good of the Institution. They choose to participate in dealing with the bad news.3They are able to influence non-reporting relationships effectively with their personal & professional creditability 4Their psychological contract is strong – Seen as Custodians5These individuals give the benefit of doubt to the leaders of the institution and champion the cause of the Institution.6

68. Professional Members16These individuals join the community, post start up and just prior to the growth stage.1Professional competence is primary focus2They bring values of excellence, a performance culture, relevant systems and a strong work ethic to the community.3What the organization does and how well the organization performs, is championed by these competent individuals.4Their economic and professional contracts are primary. Their psychological contract is weak and often considered unimportant by them.5They demand clarity of roles, expectations and resources.6They may have difficulty in influencing non-reporting relationships.7Quid Pro Quo is the salient engagement position.8Institutional members often see them as transient mercenaries.9

69. Associate Members15 January 201117These individuals have just entered the community and are finding their feet, often as 'probationers'.1They look forward to induction, mentoring and acculturation by the community.2They are often in ' recipient' positions3They often put the work community and Institution 'on probation' as they are testing the waters.4Learning is a major theme in their professional contract, their economic contract is speculative and their psychological contract is of 'goodwill'.5

70. Building Membership15 January 201118Institution Leaders & Role Models MentorsRetrain & RedeployIntegrity, vibrancy & effectiveness of a work community and Institution is influenced by Percentage of members in each commitment level

71. The rate of conversion from one commitment level to the next Council Mentors for Values Acculturate & Involve in Institution Building EXITHow transition across Institutional & Professional Memberships are handled?This matrix provides a starting point…..Professional MembershipHLInstitutional MembershipHL

72. Membership Matrix15 January 201119Individuals who are HIGH on both Institutional & Professional membership are ideal candidates for Leadership Positions - Demonstrating commitment levels akin to Co-Founder / FounderThey may take up opportunities such as starting a diversification project, running an acquired business or leading an offshore businessSometimes, Co-Founders and Institutional members lose heart and in their low cycles may regress to a lower order commitment levelMay decide to restrict their psychological involvement to that of a professional member, for a period of timeThe integrity of Institutions is almost completely dependent on the integrity demonstrated by its people and their membership and commitment levels

73. Thank You15 January 201120

Mr P M Kumar Presentation 130111

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Mr P M Kumar Presentation 130111