Mr Anand Mahindra

When we Indians hit our pillows at night, our dreams about India s future are not just colorful but steroidal. All of us are finally beginning to believe that the sandcastles we build in our minds are not going to be simply washed away by the morning tide. Anand Mahindra

PERSONAL PROFILE
Family Background
y Born into a well known Punjabi business family y Not strictly a business background; father was a congressman and

wanted to be a Diplomat

Education
y Studied filmmaking in graduation y MBA from Harvard in 1981

Career Path
y In 1989 he was appointed the President and Deputy MD of Mahindra

Ugine Steel Company Ltd. (MUSCO) y In 1991, he was appointed Deputy Managing Director of Mahindra & Mahindra Ltd. y In 1997, he was appointed Managing Director of Mahindra & Mahindra Ltd. y Vice Chairman and MD of Mahindra & Mahindra Ltd. since 2001

Positions of Responsibility
y Chairman of National Safety Council y Co-founder of the Harvard Business School

Association of India y Co-chairman of the International Council of the Asia Society, New York y Co-chair at the World Economic Forum at Davos. y Director of The National Stock Exchange of India Limited appointed under the Public Representatives category

y Founder chairman of the Mumbai festival y Most active CEO on Twitter y Recent news articles
y Apr, 2009

Controlling Stake in Satyam

y Business Week- Rebuilding standing and trust in the

market.

y June, 2008 CNN- Diversification plans into steel production, technology, real estate development

MAHINDRA & MAHINDRA

y The Mahindra group, a $6.3 Billion empire, is among

the top 10 industrial houses in India. y J.C. and K.C Mahindra founded the company Mahindra and Mahindra in 1949. y Started as a tractor and Jeep company y Currently into the following sectors:
y Automotive Industry y Information Technology y Financial Services y Infrastructure Development y Hospitality

MAJOR DECISIONS
y At Mahindra Ugine Steel Company (MUSCO) diversifications to real estate & hospitality. y As Deputy MD of M&M, restructure into 6 SBUs - 1994
y Automotive y Farm equipment y Trade and financial services sector y Infrastructure Development Sector y Information Technology and Telecom y Automotive components sector

MAJOR DECISIONS (contd.)

y Strategic partnership with British Telecom for Tech Mahindra y In 2002, launched SUV, The Scorpio y Co-Promoter of Kotak Mahindra Finance Ltd., was converted into Kotak Mahindra Bank. y Take over the Satyam Computer Services currently known as Mahindra Satyam.

SOCIAL ACTIVITIES
y Contributing share of profits (1%) to CSR activities. y ESOPs - Employee Social Options - Involving y y y y y

employees in social activities. Planning to set up two Mahindra Pride Schools Mahindra All India Talent Scholarship for the economically disadvantaged Nanhi Kali project for the girl child. Trustee of the K.C. Mahindra educational trust Announced to provide free cochlear implants to hearing-impaired, under-privileged children

M&M: INTRA-FIRM COMPARISON

16000 14000 12000 10000 8000 6000 4000 2000 0

Standalone
Sales Avg Capital employed Networth

30 25 20 15 10 5 0 -5

Standalone
PAT Ratio

In Mahindra & Mahindra, we have never believed that our business is to make cars. Rather, our business is to give shape to dreams and to create legend

LEADERSHIP QUALITIES
y Courage to Take up Challenges
y Real Estate, Banking, Hospitality, SUVs, Water Transport y Acquisition of Satyam

y Foresight

ability to deal with slowdown y Mahindra Satyam Recession, Low Acquisition Cost, Understand Intrinsic Value y Creativity and Innovation y Innovation Annual event at M&M y Change in demographic profile of workers y Reboot, Reinvent, Reignite

y 1991 decision to diversify

LEADERSHIP QUALITIES (contd.)

y Concern for People
y Virtual Pool Program
o

Manage Surplus Workforce 2008

Non billable staff get 40% salaries, 6 months Health Safety and environment

y Chairman of the National Safety Council

o

y Concern for Environment

y Mahindra Hariyali 2007- Plant a million trees y Hybrid Vehicles

Scorpio and 3 wheelers

LEADERSHIP QUALITIES (contd.)

y Self Belief
y

I could have done well at anything I tried my hand at.

Experimental, Risk-taking
y Family Values y A filmmaker? A businessman? y Took in the odds which led him into different ventures

Nurturing Talent
y Hands-on approach helped him create talent pool

Independent, Proactive
y

I would strike out my own path.

Tenacity
y The Satyam takeover

BUSINESS PHILOSOPHY
y No Group wide mission statement. y Individual SBUs have mission statements y Core Values y Good Corporate Citizenship y Professionalism y Customer First y Quality Focus y Dignity of the individual

ANAND MAHINDRA AND M&M TRANSFORMATION

y Visionary
y Admired for Technology, Quality, Innovation across segments

y Strategic Thinker
y Diversification, Acquisitions

JLR(Value), Satyam

y Change Agent
y BPR - IDAM, Tractor to SUV

y Team Builder
y Satyam Employee retention, Focus on Talent Pool

y Culture Builder
y Meritocracy, Productivity, Innovation

CRITICAL ANGLE
y Fear of failure y Indecisive, defensive, let opportunities go away? y Abuse of power? y Irrational use at any point of time? y Need to be liked y Does he go easy on people? y Fear of response y Has he avoided conflicts?

Boss-Centred Leadership

Subordinate-Centred Leadership

Use of authority by manager Area of Freedom for subordinates

Mgr makes dec and announces

Mgr presents ideas and invites questions

Mgr presents prb gets suggestions and makes decisions

Mgr permits subordinates to fn within limits defined Mgr defines limits asks group to make decisions

Mgr sells decisions

Mgr presents tentative decision subject to change

2/5/2012

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Level 5 Executive Effective Leader Competent Manager Contributing Team Member Highly capable individual
Level 5 Hierarchy by Jim Collins in his book Good to Great

FUTURE PLANS
y Invest Rs 100 crore in the IT sector in Punjab y Focus on the agri business in Punjab under the Mahindra Shubh Labh project y On the way to finalizing a joint venture with Renault. y Bidding for Human Resource Management for Railways y Entering the motorcycle segment y Going to start a car services business

TAKEAWAYS
y Recognize opportunities in the face of odds and

identify the true potential y Realizes that society is a stakeholder- Organization s growth can t be detached from social development y Inculcating Leadership Empowerment and Succession Planning y A leader sees light when others complain of darkness.

References
y http://www.moneycontrol.com/news/special-videos/anand-mahindray y y y y y y

the-auto-maker-who-dreamsmaking-films_407231.html http://www.business-standard.com/india/news/anand-mahindrawins-e/385949/ http://twitter.com/anandmahindra Six personality traits of a leader, Ram Charan Face to face- Defeating its own Hiranyakashyaps- An article of Indian IT, Anand Mahindra Business Leadership- Indian Context, Balasubramanian The Leadership Challenge, Kouzes and Posner Good to Great, Jim Collins